Rebate management software startup Enable raises $120M in funding to hit unicorn status
Rebate management software startup Enable International Inc. said today it has closed on a hefty $120 million late-stage funding round, bringing its total amount raised to $276 million and its valuation to $1 billion.
Today’s Series D round was led by Lightspeed Venture Partners and included participation from the lead investors of its earlier rounds, including Menlo Ventures, Norwest Venture Partners, Insight Partners and Sierra Ventures.
Enable is the creator of a rebate management software platform that helps manufacturers, distributors and retailers use rebates as a strategic lever for growth. It provides tools for finance and commercial teams to manage the complexity of the rebates they offer, so they can use them to optimize sales, increase revenue and profitability,
Rebates are a common incentive in the business world, offering refunds to customers whenever they make a purchase. Sometimes referred to as a retroactive discount, rebates are widely used as a marketing tool to attract customers.
Enable says the intricacies of the modern supply chain, which is influenced by global sourcing, complex vendor relationships, industry consolidation and rising customer expectations, mean effective rebate management has become a strategic imperative. It says that by using rebates effectively, businesses can protect their margins, increase revenue, mitigate risk, reduce their costs and improve customer loyalty, among other benefits. However, for businesses to maximize these benefits, they need an effective rebate management platform, it says.
Enable co-founder and Chief Executive Andrew Butt said rebates used to be an afterthought, put in place simply because businesses felt they needed to, in order to match their competitors. He explained that rebate programs were traditionally managed in Excel spreadsheets, where their value was little understood.
“By helping the market to understand how to strategically use rebates for growth, and by demonstrating the financial outcomes our customers are achieving, we’re bringing to light what effective rebate management can deliver,” Butt said. “With this round of funding, we will drive larger financial outcomes for manufacturers, distributors, and retailers who are feeling the crunch of the supply chain more than ever.”
Enable said today’s funding round comes at a time when its business has been growing rapidly. It’s currently on a trajectory to double its revenue by the end of the financial year, having sustained triple-digit growth every year since it launched its platform in 2019, though it didn’t reveal more specifics. The company boasts five offices globally and has more than 550 employees, with “thousands of companies” said to be using its software.
Lightspeed partner Arsham Memarzadeh, who will join Enable’s board of directors, said rebate programs are now responsible for the bulk of distributors’ and retailers’ profits and a major growth driver for manufacturers. “It’s no longer optional to adopt a rebate management platform, and Enable is defining the future of the category,” he said.
Looking forward, Enable said the funds from today’s round will help it to accelerate development and expand the functionality of its platform while adding new team members.
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