Artificial intelligence-powered procurement orchestration platform company ZipHQ Inc. revealed today that it has raised $190 million in new funding on a $2.2 billion valuation to accelerate research and development, develop AI-driven procurement solutions and expand globally.

Founded in 2020, Zip offers an AI-powered procurement platform that streamlines and automates the purchasing process for businesses. The company provides a single platform for managing the entire procurement lifecycle, from intake to payment, and does so by integrating with existing business systems such as enterprise resource planning and vendor management tools.

Zip’s platform uses AI to automate workflows, extract data from documents and detect risks in contracts, reducing manual work and errors while allowing teams to focus on more strategic activities. The platform also offers real-time collaboration features that guide employees through the procurement process while ensuring all stakeholders remain informed throughout the approval stages.

The company’s AI assistant helps employees submit procurement requests more efficiently, while the platform’s integration with existing systems allows for the management of vendor data, contracts and payments. The result delivers faster purchasing cycles and increased control over company spending.

Additionally, Zip helps businesses proactively mitigate third-party risk and optimize their spending. Through early visibility into procurement requests and AI-driven insights, Zip says that their service helps organizations drive better decisions and save both time and money in the procurement process.

Zip has seen strong growth, recording a three times increase in large enterprises using its platform over the last year. Notable customers include Snowflake Inc., Discover Financial Services and Sephora USA Inc., who Zip claims have collectively saved over $4.5 billion in procurement spending.

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

“Companies are wasting billions of dollars and countless hours navigating byzantine approval processes, dealing with security risks and manually entering data,” Rujul Zaparde, co-founder and chief executive officer of Zip, said in a statement. “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.”

Including the new funding, Zip has raised approximately $371 million to date, according to data from Tracxn, including a round of $100 million in May 2023.

Image: Zip