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2016 IPO Prospects: Coupa Manages Expenses Expertly

Posted on Thursday, Jan 14th 2016

Two years ago, SAP completed the $8.3 billion acquisition of Concur Technologies, clearly highlighting the importance of SaaS-based solutions within the expense management space. According to a TechNavio report, the Global SaaS-based Expense Management market is estimated to grow 19.2% annually over the period 2013 through 2018. The market is dominated by bigger vendors including the likes of Ariba, SAP through its Concur acquisition, IBM, and Oracle. Now, some startups like Coupa are also making their presence felt.

Coupa’s Offerings

San Mateo-based Coupa was founded in 2006 by Noah Eisner and Dave Stephens who were instrumental in the setting up of Oracle’s iProcure product line. Through their experiences at Oracle, the founders were debating the question, “Why should the way we buy at work be any different than the way we buy at home?” They soon realized that there was no need for the difference to exist and set up Coupa Procurement. The resulting solution is a service that simplifies the purchase process as if corporates were shopping at Amazon.

Coupa did not stop at procurement and diversified to other expense lines of the business including employee expense management. It built a unified platform that delivers a user-centric approach to all the ways companies spend money, including procurement and employee expense sheets, thus giving the organization a 360-degree view on all company spending. Today, its unified solutions span multiple functions including procurement, invoicing, expense management, sourcing, inventory, contract management, budgeting, and analytics. Through simplification and integration of these processes, Coupa has allowed organizations to save money and time normally spent on these activities. The company prides itself on being able to deliver savings to organizations and even calls itself a “savings-as-a-service” business.

Last year, Coupa acquired New York-based travel company TripScanner to expand its expertise within the travel expense management category. It also added Australian InvoiceSmash, a cloud-based provider for accounts payable and e-invoicing solutions to help strengthen Coupa’s Invoicing Solution. Through the acquisition, Coupa will be able to instantly convert emailed invoices from suppliers into a digital format to simplify and speed up the buyer’s accounts payable process. Terms of both the deals were not disclosed.

Coupa’s Financials

Coupa operates on a subscription-based model, charging its customers based on the number of users needed by the organization. The company does not disclose pricing or detailed financials, but has revealed that it had record revenues in Q3 2015. It claims to have processed more than $120 billion in expenses through its solution, which has resulted in savings of over $5 billion for its customers.

Coupa is venture funded so far with $169 million raised from investors including T. Rowe Price, Meritech Capital Ventures, Crosslink Capital, Mohr Davidow Ventures, El Dorado Ventures, Battery Ventures, Iconiq Capital, Northgate Capital, PremjiInvest, and BlueRun Ventures. Their last funding round was held in June 2015 when they raised $80 million in a round led by T.Rowe Price that valued it at over $1 billion.

Analysts expect the company to go public soon given that it had hired Todd Ford, former CFO of MobileIron as its CFO. Todd has helped his former employers MobileIron and Rackable Systems go public under his guidance.

Coupa’s biggest advantage lies in its ability to successfully integrate with multiple ERP suites including SAP, Oracle, NetSuite, and GreatPlains. A traditional ERP is focused on the back-end processes and does not necessarily extend to the business as a whole. Coupa therefore provides applications that are able to provide spend management functions within the ERP itself. It can integrate to one or many ERPs through its open API and connectors within a short time and allows enterprise users to feed data directly into the system from their mobile phones.

This segment is a part in the series : 2016 IPO Prospects

. Airbnb Sees Skyrocketing Valuations
. Actifio Looks Ready
. AppDynamics May Sustain Unicorn Valuation
. Automattic Needs to Justify Valuation
. Avant Will Have to Wait and Watch
. BuzzFeed Feeds on Native Advertising
. Coupa Manages Expenses Expertly
. Datto Bootstrapped First, Raised Money Later
. Is Uber Ready to Ride the Stock Market?
. Overfunded Domo Looks Promising
. Houzz May Unveil The Curtains
. DocuSign Looks Ready to Sign Up
. Illumio Rides On Security Trend
. Appears Ready to List
. Okta Prepares to Reveal Public Identity
. Palantir Wants to Stay Private
. Nutanix Files for IPO
. Medallia Bootstrapped First, Raised Money Later
. Slack Prepares to Communicate with the Market
. Twilio Expected to go Public Soon
. Snapchat Needs to Up Monetization ASAP
. Zscaler Sets IPO as a Long-Term Goal
. Warby Parker Should Look Before Leaping
. MuleSoft is a Unicorn, but Detailed Financials Remain Unknown
. Apttus Bootstrapped First, Raised Money Later
. Fanatics Expanding Its Playing Field
. Pinterest Finally Sees Revenues, But are they Enough?
. Tanium Bootstrapped First, Raised Money Later
. ironSource Strengthening its Revenue Generating Capabilities
. Anaplan Getting Ready to Go Public
. SecureWorks is Ready to List
. IPO-Ready Cloudera Wants to Wait and Watch
. HelloFresh Puts its IPO Plans on Hold
. Is Stripe Lining up Next?
. Qualtrics Bootstrapped First, Raised Money Later
. Skyscanner Bootstraps First from Scotland, Raises Money Later from Sequoia
. SurveyMonkey Will Likely Wait
. The Honest Company Makes the Online to Offline Model Work
. NantHealth Testing the IPO Markets, Yet Again
. BigCommerce Prepares to List
. Bloom Energy Likely to Stay Private
. Avast Software Preparing for a Listing, Yet Again
. Gusto Expands Beyond Payroll Processing
. InMobi May Have Missed the Bus
. Glassdoor Gearing up to go Public
. Human Longevity Leverages Machine Learning and Analytics to Increase Lifespan
. Blue Apron Cooking up an IPO
. Optiv Grows Inorganically
. Uber Eyeing Self-Driving
. The Trade Desk Files to List
. Deliveroo Delivers its Way to the Bank
. Selfie App Meitu Files to List on HKSE
. Apptio Files Despite Reduced Valuation and Mounting Losses
. Snap Snaps out of Chat Business to Justify Valuation
. From Bootstrapping to IPO, BlackLine Shows the Way

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