Many people have a lot of online plans that they barely use, and can save quite a bit of money with a service like Truebill to see all their recurring payments in one place. Spendflo aims to do the same for business subscribers to SaaS services, targeting chief financial officers and financial leadership teams.
The startup announced today that it has raised $4.4 million in seed funding led by Accel India and Together Fund, with participation from BoldCap and Signal Peak Ventures, along with founders and operators of companies such as Airbase, Zuora, Ivanti, CleverTap, Slintel, Lamda Test, Haptik and Wingify.
Since its launch six months ago, Spendflo claims to have saved an average of 23% for its customers. Its clients include Airmeet, Cronwpeak, Lambda Test, Urban Company, WINtify, and Yellow.ai.
Founded in 2021 by Siddarth Sridharan, Ajay Vardhan and Rajiv Ramanan, Spendflo collects all SaaS contracts in one place, giving companies insight into spending. It also offers assisted purchasing and says it can guarantee savings with its own benchmark data. The company was part of the first cohort of Atoms, an Accel program for pre-seed startups with $250,000 in non-dilutive capital.
Sridharan told TechCrunch that while he was an early employee at Volta Charging, he “watched the company go from seed to IPO during my tenure. In that time, I’ve brought over $10 million worth of SaaS tools myself.” He added that his CFO would consult him quarterly and instruct him to cut his spending in half.
“Honestly, it was very inconvenient as I had at least 150 different subscriptions at the time and SaaS purchases had become decentralized and no visibility into pricing and renewals,” said Sridharan. “But at that stage I noticed that maybe other people also had the same problem. So I started asking around financial communities to find out if there might be a solution to this.”
SaaS procurement is decentralized because it’s not just CIOs buying SaaS anymore, but every stakeholder, Srdiharan added. “The challenge here is that current SaaS purchases are happening through popular but unreliable channels such as G2 REviews, Quora, and Reddit for pricing information. Approvals eventually get stuck in endless email trials.”
On the other hand, Spendflo gives companies a central place to track their SaaS spend and usage.
As a use case, Sridharan told TechCrunch about Airmeet’s experience with Spendflo. First, it onboarded Airmeet on its platform and allowed them to centralize contracts and visualize expenses. Next, the platform strategic buyer and CMS worked on creating a procurement roadmap based on Airmeet’s needs. Finally, Spendflo’s procurement team took over the procurement, streamlined the whole process and started saving money. Sridharan said that after using Spendflo, Airmeet’s purchases are now 3x faster and save more than 16% of their SaaS costs.
Sridharan added that small and large businesses are spending nearly $330 billion on SaaS services, in addition to about $1 trillion on their own IT. “SaaS product spending is growing 25% year over year. SaaS has become the only release that CFOs have no visibility or control over. We have come to realize that the role of the CFO is evolving,” he said. “It’s not just bookkeeping anymore. Legal, ESG and FinOps, among others, all roll over to the CFO. The CFOs are no longer the referee who blows a whistle, but are now a point guard within the company.”
Spendflo sells to finance teams, working closely with department, security and department heads. Sridharan said he sees an average of six stakeholders in the buying process for SaaS tools. But, he added, Spendflo “follows a holistic approach,” meaning any SaaS buyer can submit and renew requests, view all tools, contracts and security documents, and collaborate with suppliers on renewals and new purchases.
The company makes money by charging a flat fee for the total SaaS spend it manages. Sridharan said it offers a money-back guarantee on subscription fees, making it budget neutral for financial organizations to acquire our services. “We consistently show 2x to 5x ROI savings. On average, we save 23% on their annual SaaS spend.”
In a prepared statement, Accel India partner Dinesh Katiyar said: “Pay-by-use SaaS tools are a boon for businesses around the world. They are all quickly shifting to vendors offering these tools. However, the mass exodus to SaaS has created a new challenge. Instead of centralized procurement workflows, we now have every business function buying what they need. They are overspending due to unoptimized pricing plans, underutilized tiers and unused licenses. Spendflo is committed to reducing spend efficiencies without compromising the speed of the business.”