o9 Solutions – a leading enterprise AI software platform provider for transforming planning and decision-making for global enterprises – recently announced that its existing investors, led by General Atlantic’s BeyondNetZero, the inaugural companion fund for the growth equity firm’s climate investing efforts, have invested an additional $116 million in the company. And existing investors KKR and Generation Investment Management also participated in the round. The investment values o9 at $3.7 billion, up from $2.7 billion since the company’s last investment round in January 2022.
This funding round follows a period of continued outperformance by o9, including 55% year-over-year growth in Annual Recurring Revenue (ARR) as of Q2’23. And the company also reported 67% year-over-year ARR growth as of Q1’23 and 65% growth in 2022.
In connection with the transaction, o9 also announced that General Atlantic Operating Partner and tenured business executive Gary Reiner had joined the company’s Board of Directors, bringing deep expertise at the intersection of technology, strategy, and operations. Reiner joined General Atlantic in 2010 and provides strategic support and counsel to the firm’s technology investment teams and portfolio companies. Before joining General Atlantic, Reiner served as Senior Vice President and Chief Information Officer at General Electric for nearly 20 years. Before that, he was a Partner with The Boston Consulting Group. Mr. Reiner also serves on the boards of several public companies, including Hewlett-Packard Enterprise and Citigroup.
KEY QUOTES:
“We continue to be thrilled with o9’s terrific customer value proposition, offering truly material and measurable outcomes relative to traditional planning software vendors and thereby providing strong blue chip client satisfaction. Since we first partnered with o9 in early 2022, the company has helped deliver significant revenue growth, working capital improvements and expense reductions for many large global enterprises. Our deepened support of o9 reflects the enthusiasm we have for the business and its seasoned management team, particularly as their innovative model supports the transition to more sustainable supply chains across the enterprise. We look forward to our continued partnership.”
— Gary Reiner, Operating Partner at General Atlantic
“The investment by our existing investors at a premium to our last funding round and against a backdrop of an overall pullback in market valuations is continued validation of our performance and execution against our long-term strategy. We will continue our strategy of client satisfaction and innovation as a driver of efficient growth across industry verticals and markets.”
— Chakri Gottemukkala Co-Founder and CEO, o9 Solutions
