10 reasons why the digital procurement solutions market is growing

Peakspan Capital's digital procurement investment thesis and recent $15m Series B funding in Simfoni

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Peakspan Capital’s Investment Thesis

The market for procurement software and services is vast (it is a function of every Company at a certain scale) and has seen accelerating demand pull on the back of the global pandemic.

 

Mid-Market enterprises are experiencing a more pronounced need for digital procurement solutions given a lack of procurement leadership, lack of sophistication and lack of internal resources needed for tactical spend initiatives — all underpinning the opportunity for a hybrid software / managed procurement solution.

10 reasons why the digital procurement solutions market is growing rapidly, especially in the mid-market.

1. Globalizing supply chains…are increasing complexity

2. Burgeoning supply bases…require higher levels of procurement involvement

3. Expansion through M&As…requires strong data visibility and consistent process adoption

4. Rampant misclassifications and non-compliance spend (c56%)…and savings c8% leakage

5. Antiquated systems…replaced by digital procurement solutions to improve productivity

6. Best-in-class software is too costly… especially for mid-market companies

7. Consumption-based pricing models…are becoming more popular

8. Lack of IT support for implementation of procurement suites

9. Understaffed procurement departments…with 62% allocated to tactical, transactional activities

10. Global ESG transparency…requires systems to identify environmental and societal issues

 

Why has Peakspan Capital invested in Simfoni?

Peakspan Capital recently announced it is leading digital solutions provider Simfoni’s $15m Series B funding for its Spend Analytics and Spend Automation platform.

 

‘Simfoni is bringing scalable, enterprise-quality procurement software capabilities to under-resourced, multi-national enterprises in the mid-market. The Company is the first we’ve seen to crack this nut and has done so through a differentiated GTM, product, pricing, and deployment model for procurement software.’

 

Simfoni has experienced hyper-growth since it was founded in 2015, with 350% year-on-year growth as digital procurement has gained more interest. The digital solutions provider has invested in its technology and people, boasting more than fifty years of procurement software expertise within its team. When asked why Peakspan Capital invested in Simfoni, they revealed how not only did the company’s growth attract them, but the team comprised of high talent, low ego and resilient individuals.

 

Check out the full thesis article here.

 

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