FinancialForce, a provider of a Salesforce-based ERP and HR services has raised $110m in a round led by Technology Crossover Ventures (TCV) with participation from Salesforce’s investment arm, Salesforce Ventures. The company said it will use the funds to expand sales, marketing and development.
The latest funding round comes less than a year after the company scored $50m from Advent International.
“Our goal has always been to transform the ERP market in the same way that Salesforce has for CRM. As our growth indicates, the industry is responding to our customer-centric approach to ERP where our apps, built natively to run alongside the Salesforce Customer Success Platform, help businesses create meaningful relationships with customers and employees to grow their top and bottom lines,” said Jeremy Roche, chief executive officer and president, FinancialForce.com.
“With TCV and Salesforce Venture’s contributions, FinancialForce.com can continue our rapid rate of growth and become the cloud ERP choice for all forward-thinking companies,” Roche added.
The company has reported strong growth over the past couple of years, no doubt bolstered by the continued success Salesforce seems to be realising.
FinancialForce said 2014 was its “banner year” for the firm, reporting 91 per cent annual subscription run rate growth and $50m in revenue. It also increased its global headcount by more than 80 per cent, from 250 employees at the end of 2013 to more than 450 at the end of 2014. The company said it currently has more than 500 employees spread across six global offices.
The funding round speaks to what now seems to have become an entrenched industry dynamic – where younger, more nimble cloud-native startups like NetSuite and FinancialForce are starting to overtake large IT incumbents, particularly in areas where software is traditionally bulky and relies heavily on tight integration (i.e. ERP). Salesforce, the platform upon which FinancialForce is based, recently announced full fiscal year 2015 revenue hitting $5.37bn – no small sum by any stretch of the imagination.