Funding Round attributes
Odoo, a Belgian open-source enterprise resource planning (ERP) software provider, has raised $527 million through a secondary share sale, elevating its valuation to $5.26 billion. The transaction was led by CapitalG and Sequoia Capital, with participation from BlackRock, Mubadala Investment Company, HarbourVest Partners, AVP, and Alkeon. This secondary capital transaction reflects strong confidence in the company’s vision and impact. As part of the transaction, existing investors Summit Partners, Noshaq, and Wallonie Entreprendre are selling a portion of their shares; Summit will remain Odoo’s largest institutional shareholder.
Founded in 2005 by CEO Fabien Pinckaers, Odoo offers a suite of business applications covering various operational needs, including accounting, inventory management, human resources, and customer relationship management. The company's open-source model allows for extensive customization and integration, catering to a diverse range of businesses.
The $527 million raised in this secondary transaction involves the sale of existing shares by early investors and employees, rather than the issuance of new shares. This approach provides liquidity to shareholders while bringing in new investors to support the company's growth trajectory.
General Atlantic's investment reflects confidence in Odoo's business model and market potential. The firm has a history of investing in technology companies with scalable platforms and strong growth prospects. Summit Partners and Sofinnova Partners, both existing investors, have reaffirmed their commitment to Odoo by participating in this funding round.
Odoo's valuation increase to $5.26 billion underscores its significant growth and market presence. The company has expanded its global footprint, serving over 7 million users worldwide, and continues to develop its product offerings to meet the evolving needs of businesses.
The funds from this secondary sale are expected to support Odoo's strategic initiatives, including product development, market expansion, and potential acquisitions. By enhancing its ERP solutions and extending its reach, Odoo aims to solidify its position in the competitive enterprise software market.
In summary, Odoo's $527 million secondary funding round, led by General Atlantic with participation from Summit Partners and Sofinnova Partners, has increased the company's valuation to $5.26 billion. This investment is set to support Odoo's ongoing growth and expansion efforts in the global ERP software market.
