Coupa’s E-Procurement Spending Hits $9.6B
With continuous growth for the past 14 quarters, 95% renewal rates for subscriptions, and 126% growth in annual contracts, Coupa's CEO Rob Bernshteyn seems to be way ahead of his competition. Yet, he still considers Coupa the underdog in the e-procurement platform industry.
The company even pulled in Coca-Cola Bottling, Orbitz, and AAA Insurance into their roster. Oh and they just raised another $22 million in Series E led by Crosslink Captal. I forgot to mention they were also voted one of the best places to work in the Bay Area by the San Francisco Business Times. It's like some sort of idyllic Charlie and the Chocolate Factory scenario playing out over at Coupa's offices.
Coupa, for the uninitiated, manages and monitors all expenses and purchases for a company through its cloud-based platform. All supplies and anything that a business may need to operate can be purchase and tracked through Coupa.
Their biggest competition is Ariba, who was recently purchased by SAP. They've lost "almost every competition" when faced by Coupa says Bernshteyn, explaining that what sets Coupa apart is "competitors are a products company, we're a software-as-a-service company." Not only that, he also admits that his competition is stuck in the past, running the same technology they were operating on a decade ago. "The new tech paradigm makes things much easier," says Bernshteyn. Coupa runs their procurement platform on Ruby on Rails, making it very quick to update all customers with relevant information says Bernshteyn.
As for raising another $22 million, Bernshteyn says they have "more than enough in the bank," but it will go to research and development as well as global expansion, specifically into Europe. The biggest challenge (because it's obviously not the competition) is getting their product in front of fresh customers, who still rely on the companies running old technology.
"The competition is pretty bad at this," says Rob, continuing on that the company, and Coupa as a product, is designed with usability as a significant factor. Meaning that customers pull the product from Coupa, instead of having it pushed on them – as is the case in other e-procurement platforms. Not to mention, their adoption of quick and adaptable technology means, "The time it takes to get deployed is head and shoulders ahead of the competition."
For all their successes, it's difficult to imagine where there could be any issues. They're looking to swipe away the best employees during their expansion, and as for customers, Rob states simply, "There's no reason not to go with us."