London-based startup Vertice stands out in the expense management field, focusing on utilizing artificial intelligence technology to optimize corporate spending on software and cloud services. As businesses invest hundreds of billions in these areas, Vertice has achieved 13 times growth over the past three years and successfully secured $50 million in a new funding round to expand its business vision.
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Roy Tuvey, the CEO and co-founder of Vertice, stated that the company's goal is to standardize corporate procurement processes, not limited to software and cloud services. Currently, many businesses use different solutions for procurement, leading to fragmented processes, putting significant pressure on procurement teams to save costs and improve efficiency. Their technologies are not yet perfect, which is why Vertice offers a unified and streamlined platform to help businesses procure more efficiently.
This funding round was led by new investor Lakestar, with participation from Perpetual Growth and CF Private Equity, alongside previous investors including Bessemer Venture Partners and 83North. Vertice has raised approximately $100 million to date, and although the valuation has not been disclosed, Tuvey confirmed that this round's valuation is higher than the "hundreds of millions" from a year ago.
Vertice's customer base is continuously expanding, with clients across Europe, the US, and the Asia-Pacific region, including well-known companies like ASML, Euronext, Grant Thornton, and Santander Bank.
According to Gartner's predictions, with the rise of cloud computing and artificial intelligence, spending on data centers, software, and related IT and communication services is expected to grow by over 9% by 2025, nearing $5 trillion. Such a large market has attracted numerous companies to compete, and Vertice faces competition from platforms like Spendbase, Spendesk, Gartner, and G2.
Tuvey pointed out that Vertice's uniqueness lies in its ability to deeply integrate with corporate data, allowing for a better understanding of business needs. Vertice has established a "large software procurement model" similar to large language models, providing recommendations based on actual software usage by companies. The company has accumulated approximately $3.4 billion in SaaS and cloud spending data and conducts benchmark data analysis on over 16,000 software vendors.
Clients use Vertice to accelerate the procurement process and save costs. Vertice claims that it can typically shorten the procurement cycle by half, resulting in a 20% to 30% cost savings. Tuvey mentioned that the company uses AI technology to extract contract information and build procurement assistance tools to help finance teams automate tasks that previously required manual completion. Additionally, AI technology can identify bottlenecks in corporate procurement processes, thereby optimizing the entire procurement workflow.
With the current demand from businesses to reduce operating costs, Vertice's services are attracting more attention from investors. Georgia Watson, a partner at Lakestar, stated that some portfolio companies are using Vertice's services and providing very positive feedback.
Key Points:
🔍 Vertice secures $50 million in funding to expand its AI-driven procurement management platform.
💼 Clients include ASML, Santander Bank, among others, covering Europe, the US, and the Asia-Pacific region.
🤖 With AI technology, Vertice can halve the procurement cycle and save 20%-30% on procurement costs.
