According to a report by MGI Research, the total addressable market of contract lifecycle management companies is estimated to grow at a CAGR of 31% to $20 billion over the next five years. Bellevue, Washington-based Icertis is a leading player in the market that recently achieved a Unicorn status for its AI-based platform.
Icertis was set up in 2009 by Monish Dorda and Samir Bodas in Pune, India. They wanted to transform the contract management process. Its AI-based Icertis Contract Management (ICM) platform helps organizations across multiple sectors manage their contracts. It enables users to handle contracts ranging from procurement and sales to non-disclosure agreements. Additionally, it helps users create contracts, tracks when terms are met, ensures regulatory compliance, and automates administrative tasks like sending renewal reminders.
Icertis’s Platform runs on the cloud. It was built on Microsoft Azure but also integrates with other public clouds like Salesforce.com and the Google Cloud Platform. It has managed to attract quite a bevy of clients including names like Microsoft, HBO, Skullcandy, Cognizant, Lending Club, and Airtel.
Icertis prides itself on having built a platform that is easy to use, customize, and adopt. Its AI capabilities have helped build a platform that offers compliance and track risks each time the contract is modified, or there are external data changes. It allows organizations to better track potential liabilities and discover hidden value by automatically searching metadata for related contracts and provide a holistic view of any given contract’s complex dependencies. It is an enterprise-wide platform that offers a centralized repository across all departments to provide 360-degree visibility across every contract for every user, along with giving them a holistic view of dependencies, risks, and all related data.
Icertis is privately held and does not disclose its detailed financials. According to recent reports, it is managing 5.7 million contracts, valued at more than $1 trillion. Analysts estimate its revenues at close to $100 million.
It has raised $211 million in funding so far from investors including Greycroft, Cross Creek, PremjiInvest, B Capital Group, Ignition Partners, PSP Growth, Eight Roads Ventures, e.ventures, and Meritech Capital Partners. Its last round of funding was held in July this year when it raised $115 million in a round led by Greycroft and PremjiInvest. The round valued the company at $1 billion, doubling its 2018 valuation of $500 million.
Icertis plans to use the latest round of funding to expand its technology platform including the expansion of its blockchain framework that will help improve transparency in supply chain and certification compliance.
Icertis is not the only player in the market though. It faces competition from the likes of Apttus and DocuSign. Apttus is still privately held with revenues of close to $150 million and a last published valuation of $1.8 billion. DocuSign got into the market with the acquisition of SpringCM last year. SpringCM had raised $128 million in funding and was acquired by DocuSign for an estimated $220 million. Salesforce also became a big competitor in the space when it acquired SteelBrick for an estimated $300 million in 2015.