Highlights:

  • Zip’s platform employs AI to automate workflows, extract data from documents, and identify risks in contracts, minimizing manual tasks and errors.
  • Zip assists businesses in proactively managing third-party risks and optimizing their expenditures.

Recently, an artificial intelligence-powered procurement orchestration platform, ZipHQ Inc., has secured USD 190 million in funding at a USD 2.2 billion valuation. The investment will be used to accelerate research and development, enhance AI-driven procurement solutions, and support global expansion.

Founded in 2020, Zip provides an AI-powered procurement platform designed to streamline and automate the purchasing process for businesses. The platform offers a unified solution for managing the entire procurement lifecycle, from intake to payment, by integrating with existing systems like enterprise resource planning (ERP) and vendor management tools.

Zip’s platform leverages AI to automate workflows, extract data from documents, and identify risks in contracts, minimizing manual tasks and errors while enabling teams to focus on strategic initiatives. It also provides real-time collaboration tools that guide employees through the procurement process, ensuring all stakeholders stay informed during each approval stage.

Zip’s AI assistant streamlines the procurement request process for employees, while its integration with existing systems enables efficient management of vendor data, contracts, and payments. This results in quicker purchasing cycles and enhanced control over company spending.

Zip also assists businesses in proactively managing third-party risks and optimizing their spending. By providing early visibility into procurement requests and leveraging AI-driven insights, Zip claims their platform enables organizations to make more informed decisions, saving both time and money in the procurement process.

Zip has experienced significant growth, with a threefold increase in large enterprises adopting its platform over the past year. Notable clients such as Snowflake Inc., Discover Financial Services, and Sephora USA Inc. have reportedly saved over USD 4.5 billion in procurement spending through Zip’s services.

BOND Capital Management LP spearheaded the Series D round, joined by DST Global Ltd., Adams Street Partners, and Alkeon Capital Management, along with existing investors Y Combinator Management and Charles River Ventures.

“Companies are wasting billions of dollars and countless hours navigating byzantine approval processes, dealing with security risks and manually entering data. Zip has already proven that we can fix that, saving our customers billions of dollars and thousands of hours of time — and our new round of funding will allow us to continue to revolutionize business spending,” Rujul Zaparde, Co-founder and Chief Executive Officer of Zip, said in a statement.

With the new funding, Zip has raised a total of approximately USD 371 million to date, which includes a USD 100 million round in May 2023, according to sources.