Odoo S.A is a leading provider of end-to-end business software applications for small and medium enterprises. The company has, through a funding round with CapitalG and Sequoia Capital, successfully raised secondary capital worth $526m. Other participants in the fundraising round include BlackRock, Mubadala Investment Company, HarbourVest Partners, AVP, and Alkeon. These rounds of secondary capital raising affirm investor confidence in Odoo in its continued growth and its pursuit of reshaping the new business software landscape through such innovative solutions.
Since its conception by Fabien Pinckaers in 2002, Odoo has emerged as an unstoppable force in the ecosystem of SMB software. The organization has developed a complete spectrum of management applications that have friendly and accessible interfaces in which businesses can operate, from streamlined operations to enhanced customer satisfaction to innovation. Odoo has a 40% annual growth rate, and the company is projected to hit €1 billion in billings by 2027. Today, Odoo supports more than 13 million users worldwide and adds about 7,000 new clients every month.
The investment round brings Odoo’s valuation to €5 billion and reinforces its market leadership as well as profitability. It will further speed up the company’s expansion plans with new subsidiaries in Europe, Latin America, and Asia-Pacific in the next three years. Odoo Chief Commercial Officer Sebastien Bruyr stated that these efforts would further strengthen the company’s global presence and enhance research and development initiatives.
Odoo’s solid financial health manifests in the projected $683 million in billings during the next 12 months. Under the terms of the deal, Summit Partners, Noshaq and Wallonie Entreprendre sold some of their interests but Summit retained its leading position as the largest institutional shareholder of Odoo.
As reported, Alex Nichols from CapitalG said in a statement: “Odoo provides the unique value proposition through a wide range of attracting customers across over 100 countries across various industries. On this, Andrew Reed added in a statement: It’s long-term potential on transformation in the SMBs.”
The new investment round follows previous rounds also led by Summit Partners but clearly shows that the products remain attractive to investors in their pursuit of continuous offerings in ERP technology, leading with the recent release of Odoo 18, whose solution is scalable and customizable in order to suit new challenges of SMBs’ businesses in a changing, digital world.
As Odoo heads forward with confidence in the ability of staying on its profitable trajectory, it also faces an expansive future both in its products and geographical reach.
