Zip Valuation, Funding & Investors

Zip is valued at $2.2B as of October 2024.

See full Zip profile

Last Zip valuation

$2.2B

Series D · Oct 2024

Last Zip funding round

$190M

Series D · Oct 2024

Cumulative funding Zip raised

$371M

across 6 funding rounds

Key investors in Zip

  • CRV
  • Y Combinator
  • Tiger Global
  • Y Combinator Continuity Fund
  • DST Global
  • Adams Street Partners

Zip Overview

About Zip

Zip is a San Francisco-headquartered spend management platform unifying procurement for enterprises. Launched as ZipHQ, it routes employee purchase requests through approvals involving finance, IT, and legal teams, integrating with ERP systems like NetSuite and SAP to generate POs.


Founded

2020

HQ

United StatesSan Francisco, CA

Website

ziphq.com

Status

Privately held

Customer focus

B2B

Revenue model

Subscription

Valuation

$2.2B (Oct 2024)

Zip Valuation

Zip is currently valued at $2.2B, based on its Series D in October 2024.

The $190M round was led by Bond, with participation from Adams Street Partners, Y Combinator, Alkeon Capital, CRV and DST Global.

Zip's valuation has grown 1.8x from $1.2B at its Series B in May 2022 to $2.2B in October 2024, across 3 priced rounds.

Zip valuation by funding round

Zip valuation by funding round
DateStageValuation
Oct 2024Series D$2.2B
May 2023Series C$1.5B
May 2022Series B$1.2B

Zip Funding History

Zip has raised a total of $371M across 6 funding rounds.

Zip's first fundraising round was a $11M seed round in August 2020. The most recent completed round was a $190M Series D in October 2024.

Zip funding rounds

Zip funding rounds
DateStageInvestorsRaisedValuationDeal Summary
Oct 2024Series DBond (lead); Adams Street Partners; Y Combinator; Alkeon Capital; CRV; DST Global$190M$2.2BZip is the world’s leading AI-powered procurement orchestration platform, founded in 2020 and headquartered in San Francisco, that streamlines the process of buying software and hardware for enterprises by unifying sourcing, approval, and payment workflows to drive efficiency, mitigate risk, and support growth. The company serves major enterprises and is positioned as an essential tool in Fortune 500 tech stacks amid economic pressures for cost control. On October 21, 2024, Zip closed a $190 million Series D funding round led by Bond, with participation from new investors DST Global, Adams Street Partners, and Alkeon Capital, plus existing backers Y Combinator and CRV, marking the largest investment in procurement technology in over two decades and one of the biggest for enterprise SaaS this year. This brought Zip's post-money valuation to $2.2 billion, up 47% from its $1.5 billion valuation in the prior $100 million Series C in May 2023, with total funding raised exceeding $371 million. The capital will fuel investments in engineering, R&D including a new internal AI lab for advanced procurement tools, geographic expansion especially in EMEA where Zip saw over 200% growth in the past year via its London office, and team scaling with over 300 employees currently. Bond's Jay Simons highlighted Zip's customer success focus and product innovation as key differentiators. Zip's funding trajectory underscores its market leadership, with this round being the largest in its space for 2024 so far, building on its 2023 raise that was the biggest in procurement that year. The company was represented by Goodwin Procter in the financing.
May 2023Series CY Combinator (lead); CRV$100M$1.5BZip is a San Francisco-based procurement fintech founded in 2020 that provides an intake-to-pay platform to streamline B2B purchasing, spend management, approvals, purchase orders, payments, and invoice processing for enterprises. The platform offers visibility into all purchases, analytics dashboards for expense tracking, and efficiency tools, recently enhanced with generative AI features to synthesize insights and boost productivity. Customers include Snowflake, Coinbase, Canva, Databricks, Webflow, and Northwestern Mutual, spanning startups to Fortune 500 companies, with hundreds of global users and nearly $1 billion in monthly approvals processed. On May 15, 2023, Zip raised $100 million in a Series C round from Y Combinator, CRV, and Tiger Global, achieving a $1.5 billion post-money valuation—a slight increase from its prior $1.2 billion valuation after a $43 million Series B in May 2022. This brought total funding to $181 million across seed, $25 million Series A, Series B, and Series C rounds. Y Combinator's Garry Tan highlighted Zip as one of its most successful recent B2B companies for solving spend control challenges. The funding supports accelerated product development, including AI integrations for the intake-to-pay process, hiring to expand from 250 employees, a new Dallas office alongside San Francisco headquarters and Toronto satellite, and driving user adoption. CEO Rujul Zaparde noted significant ARR growth since Series B without disclosing specifics, amid a procurement sector slowdown where Zip's round was the largest in 2023. A Zip survey revealed only 11% of business spend is typically PO-backed, underscoring market needs for better spend management amid cost pressures. Zip has more than doubled its customer base since May 2022 and tracked $937 million in total savings, positioning it against competitors like Keelvar in a market where ERP/procurement funding dropped sharply from $1.5 billion in 2021 to $115 million YTD 2023 pre-Zip's deal.
May 2022Series BY Combinator Continuity Fund (lead); Tiger Global; CRV$43M$1.2BZip is a San Francisco-based fintech startup founded in 2020 by Airbnb alumni, offering an AI-driven procurement orchestration platform that acts as a 'concierge for procurement,' automating B2B processes like intake, sourcing, vendor management, purchase orders, and payments while analyzing vendors for risks and savings. The company participated in Y Combinator's Summer 2020 batch and had over 100 customers at the time of its Series B, including Canva, Snowflake, Roblox, Coinbase, Airtable, Toast, Webflow, and Databricks. In May 2022, Zip raised $43 million in a Series B round led by Y Combinator Continuity Fund, with participation from Tiger Global and CRV, achieving a $1.2 billion post-money valuation and bringing total funding to $81 million. This unicorn status was reached in about 18 months since founding, with the deal closing earlier in 2022. Investors highlighted the product's strong fit for enterprise procurement pain points, where it sold itself quickly even in early stages. Post-Series B traction included disclosing in December 2022 over 175 customers in 60 countries, helping save $673 million and onboarding 40K vendors; by May 2023, nearly $1 billion monthly approved spend and $937 million total saved. Subsequent rounds included a $100 million Series C in May 2023 at $1.5 billion valuation and $190 million Series D in October 2024 at $2.2 billion led by Bond, with total funding reaching $371 million. Zip operates in the massive procurement market, second only to payroll in business spend, competing in a space with precedent deals like Coupa's $8 billion acquisition at 8.4x revenue.
Aug 2021Series ATiger Global (lead); Nate Rosenthal; Y Combinator Continuity Fund; CRV$27M--
Aug 2020SeedY Combinator (lead); TwentyTwo VC$100K--
Aug 2020SeedY Combinator (lead); CRV$11M-Zip is a San Francisco-based procurement fintech founded in 2020 that provides an intake-to-procure platform to streamline B2B purchasing, manage business spend, and offer visibility on all purchases. It has expanded to an intake-to-pay platform including automated purchase order creation, B2B payments, and invoice processing. The company participated in Y Combinator's Summer 2020 batch. Subsequent funding includes a $43 million Series B in May 2022 led by YC Continuity with Tiger Global and CRV, a $100 million Series C in May 2023 at $1.5 billion post-money valuation with Y Combinator, CRV, and Tiger Global, and a $190 million Series D in October 2024 at $2.2 billion valuation led by Bond with DST Global, Adams Street, Alkeon, Y Combinator, and CRV. Zip serves over 200 customers including Snowflake, Coinbase, Canva, Webflow, and Databricks, and plans to use funds for product development, hiring, geographic expansion, and AI integration.

Who has invested in Zip?

10 investors have backed Zip across its funding rounds, including CRV, Y Combinator, Tiger Global, Y Combinator Continuity Fund, DST Global and Adams Street Partners.

Lead investors include Bond, Y Combinator, Y Combinator Continuity Fund and Tiger Global.


Zip Investors

Investors in Zip by funding rounds participated
InvestorHQRoundsRoleFirst check
CRVUnited StatesUnited States5ParticipantAug 2020
Y CombinatorUnited StatesSan Francisco, CA4LeadAug 2020
Tiger GlobalUnited StatesNew York City, NY2LeadAug 2021
Y Combinator Continuity FundUnited StatesSan Francisco, CA2LeadAug 2021
Adams Street PartnersUnited StatesChicago, IL1ParticipantOct 2024
Nate RosenthalUnited StatesUnited States1ParticipantAug 2021
TwentyTwo VCUnited StatesSan Francisco, CA1ParticipantAug 2020
Alkeon CapitalUnited StatesNew York City, NY1ParticipantOct 2024

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Zip Competitors

Zip competitors include listed companies like Kingdee and Freee, and private ones like Unqork, XINGYUN GROUP, Smart Fabric and HighRadius.

Public and private companies comparable to Zip
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
UnqorkUnited StatesNew York City, NYPrivate$133M-$2B15.0x
XINGYUN GROUPChinaShenzhenPrivate--$2B-
Smart FabricChinaShenzhenPrivate--$2.5B-
HighRadiusUnited StatesHouston, TXPrivate$70M-$3.1B-
KingdeeChinaChinaPublicly listed$1B$95M$3.2B2.5x
FreeeJapanJapanPublicly listed$214M$6M$1.5B4.8x

Zip Public Comps

Zip is still privately-owned, but its public comps include Freee, Digiwin, Kingdee, Asseco Business Solutions, Inspur, TOTVS, Hangzhou Anysoft, Business Engineering, Koal Software and Huitongda Network.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Freee$214M$6M6.3x4.8x237.7x65.4x
Digiwin$363M$48M4.0x3.8x30.1x23.6x
Kingdee$1B$95M2.7x2.5x29.9x24.2x
Asseco Business Solutions$126M$49M5.8x5.2x14.9x12.8x
Inspur$172M($31M)3.7x2.7x(20.3x)-
TOTVS$1.1B$318M3.9x3.2x13.7x12.1x
Hangzhou Anysoft$150M$15M5.5x-54.3x-
Business Engineering$157M$49M2.9x2.8x9.2x-

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Common questions about Zip

When was Zip founded?Zip was founded in 2020.
Where is Zip headquartered?Zip is headquartered in San Francisco, CA, United States.
Is Zip publicly listed?No, Zip is a private, VC-backed company.
What is Zip's valuation?Zip was last valued at $2.2B in its Series D in October 2024.
How much funding has Zip raised?Zip has raised $371M across 6 funding rounds.
What was Zip's last funding round?Zip's last funding round was a $190M Series D in October 2024, led by Bond.
Who are Zip's investors?Zip's investors include CRV, Y Combinator, Tiger Global, Y Combinator Continuity Fund, Adams Street Partners, Nate Rosenthal, TwentyTwo VC, Alkeon Capital, DST Global and Bond.
Which companies are comparable to Zip?Companies comparable to Zip include Unqork, XINGYUN GROUP, Smart Fabric, HighRadius, Kingdee and Freee.

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