Odoo SA, a provider of enterprise resource planning software, today announced that investors have bought €500 million worth of its shares in a secondary sale.

Alphabet Inc.’s CapitalG startup fund and Sequoia Capital led the consortium that made the purchase. The sellers, in turn, included Odoo investors Summit Partners, Noshaq and Wallonie Entreprendre. The deal values the Belgium-based software maker at €5 billion, up from the €3.2 billion it was worth following its most recent primary funding round.

Odoo’s namesake ERP platform includes more than two dozen business applications. Some are designed to help companies manage customer-facing activities such as running ad campaigns and processing online purchases. Odoo also provides applications for an array of backoffice use cases, including accounting, procurement and recruiting. 

The company distributes its platform’s core feature set under an open-source license. Odoo makes money by selling paid editions that include additional applications, as well as enhancements to some of the applications in the open-source version. The paid version of the company’s sales suite, for example, offers additional features that can be used to create customer loyalty programs.

Odoo’s product portfolio also includes hardware. The IoT Box is a router-sized module that can link connected devices to the software maker’s ERP platform. An online retailer, for example, could use the IoT Box to send shipping labels from its Odoo environment to the printer in its logistics warehouse.

Customers whose requirements are not fully addressed by the built-in features can extend the ERP platform using partner-developed extensions. Moreover, a company may create its own extensions. Odoo provides a no-code application creator, Odoo Studio, that makes it possible to create simple programs atop its ERP platform. 

The company offers its software in three editions. One is designed for on-premises use while another is delivered as a managed cloud service. There’s also a platform-as-a-service offering, Odoo.sh, that companies can use to develop and host highly customized implementations of the ERP platform.

The company disclosed on occasion of today’s valuation milestone that it ended 2023 with €370 million in billings. That number is on track to top €650 million next year and reach €1 billion in 2026. Odoo says that it’s adding about 7,000 new customers every month in addition to the 13 million users that already rely on its software.

To keep up the sales growth, Odoo plans to hire more employees and grow its international presence. The initiative will see the company open five new regional subsidiaries over the next three years. Odoo said it plans to make those growth investments while staying profitable on an EBITDA, or earnings before interest, taxes, depreciation and amortization, basis. 

Image: Odoo