Odoo Raises $527M to Strengthen Its Open-Source ERP Leadership
Belgium-based Odoo, a leader in open-source enterprise resource planning (ERP) software, has secured $527 million (€500 million) in secondary funding. The round was led by CapitalG (Alphabet’s venture arm) and Sequoia Capital, with participation from Alkeon, AVP, BlackRock, HarbourVest Partners, and Mubadala Investment Company. This funding boosts Odoo’s valuation to $5.26 billion (€5 billion), cementing its position as a major player in the ERP market.
Scaling With Open-Source Innovation
Odoo serves over five million users globally with a suite of 80 integrated business applications, ranging from accounting and CRM to manufacturing and marketing. Additionally, its app store features over 50,000 community-developed apps, creating a robust ecosystem of developers and partners. The company generates most of its revenue through its free-to-access open-source tools, with 20% of its business coming from its premium Odoo Enterprise offerings.
Growth and Future Ambitions
Odoo has been growing at 40% annually and is projected to exceed $685 million (€650 million) in billings in the next year, with an ambitious target of $1.05 billion (€1 billion) by 2027. The new funding will accelerate research and development, focusing on enhancing its product offerings and integrating emerging technologies like AI to maintain its competitive edge.
A Rare Secondary Investment
This is Odoo’s first major funding round since 2014 when it raised $10 million in a Series B. The secondary funding structure allows existing investors, such as Noshaq, Summit Partners, and Wallonie Entreprendre, to sell shares to new backers, including CapitalG and Sequoia. Odoo’s sustained growth and profitability have enabled it to operate without raising primary capital for the last eight years, making this funding round a strategic move to fuel its expansion.
Transforming the ERP Landscape
By focusing on affordability and ease of implementation, Odoo has disrupted the traditional ERP market dominated by giants like SAP. Its ability to offer a unified, cost-effective suite of apps tailored to small and medium enterprises has made it a go-to solution for businesses seeking a flexible ERP system.
Odoo’s continued innovation and focus on the SME market position it as a game-changer in the ERP space, leveraging its open-source roots and thriving community to drive its mission forward.
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