- Leading subscription commerce platform AppDirect announced it raised $185 million from global institutional investor Caisse de dépôt et placement du Québec (CDPQ) and existing investors
Leading subscription commerce platform AppDirect announced it raised $185 million from global institutional investor Caisse de dépôt et placement du Québec (CDPQ) and existing investors. Including the $185 million in funding, the company has raised a total of about $465 million.
Since 2015, AppDirect has seen tremendous growth across many of its indicators including Gross Merchandise Value (GMV) of over 1,500 percent to over $1 billion, expanding its global footprint, and servicing more than 2,000 merchants around the world. The new funding round supports accelerated organic expansion, strategic acquisitions, and additional hiring.
Over the last few years, the old world of products and one-time transactions has transformed into a new era of subscription commerce with predictable and recurring revenue ranging for everything from software and consumer media streaming services to heating and air conditioning maintenance.
But many companies are running into the limits of their subscription billing tools, making it difficult to bring products to market quickly, creating a disjointed customer experience, and creating management challenges. And organizations now need to support full subscription commerce. This transition includes the integrating of commerce flows from any online or off-line sales channels while at the same time meeting customer demand for instant provisioning of tools and services.
As more B2B companies make this shift, the 2020s are set to become the era of B2B subscription commerce. And public cloud offerings have made software-as-a-service (SaaS) ubiquitous, and B2B companies now are looking at subscription models for anything that can be monetized based on value rather than ownership. The IMARC Group predicts that the global anything as a service subscription market will grow to over $340 billion by 2024, reaching a compound annualized growth rate of approximately 24%.
And AppDirect provides vast options for organizations to quickly launch, scale, and transform their subscription business. The AppDirect platform powers millions of subscriptions worldwide, handling commerce for companies like Vodafone, Keller Williams, ADP, Honeywell, and Deutsche Telekom.
KEY QUOTES:
“Today, businesses are facing unprecedented challenges. Many companies began digital selling practically overnight, but need assistance integrating new technologies and processes into their operations and making them work at scale for the long-term. Our mission at AppDirect has always been to make technology globally accessible, and we are rising to meet that calling at a time when it feels especially urgent. We couldn’t be more excited that CDPQ and our existing investors are partnering with us on that journey as we enter a new phase of expansion. This renewed support from new and existing long-term partners reaffirms their confidence in our vision, our growth trajectory, and the market opportunity.”
— Daniel Saks, President and Co-CEO of AppDirect
“AppDirect solutions are becoming increasingly popular with organizations that rely on a large, ever-changing list of software to perform most of their basic tasks. AppDirect has a proven business model and a solid client base that uses its platform daily to run their core operations. For Inovia, this announcement is an important milestone in a longstanding relationship that has seen AppDirect flourish from a small startup to a major player in the cloud-based business services market.”
— Chris Arsenault, Managing Partner at Inovia
“AppDirect has established itself as the global leader in the application market for cloud services delivery. They are experiencing rapid growth, and the quality of its client network illustrates the success of its model. AppDirect plays a key role in simplifying the digitalization of businesses through cloud services and CDPQ’s investment will contribute to the acceleration of its growth plan.”
— Thomas Birch, Global Managing Director, Venture Capital and Technology at CDPQ
