In a significant development, rebate software developer Enable announced the successful closure of a new investment round, catapulting its valuation to an impressive $1 billion. The company raised $120 million in this round, with Lightspeed Venture Partner, an existing investor, leading the investment effort. Enable had previously achieved a valuation of over $800 million after a capital raise just a year ago.
Enable, founded in the UK in 2016 and later relocating to San Francisco in 2020, specializes in providing cloud-based rebate management software to manufacturers, distributors, and retailers. Among its notable clientele are industry giants such as Schneider Electric and Home Depot.
The company's success is underscored by its remarkable financial performance, reporting revenue that more than doubled. This achievement becomes even more notable in the context of a sluggish growth stage in the financing market. In a statement, Enable's co-founder and CEO, Andrew Butt, expressed pride in the company's growth, emphasizing the pivotal role of their rebate management software in driving economic activity and supply chain efficiency.
"We've built the software company in a space that was quite unknown and quite behind the scenes, but people are realizing this is the way to actually drive the economy and drive the supply chain by using these rebates in a strategic way," said Butt in an interview.
Enable's strategic vision extends beyond its current offerings, with plans to invest in research and development (R&D) to integrate artificial intelligence (AI) into its platform. The goal is to leverage AI to generate contracts and extract pricing insights from data, providing customers with advanced tools to enhance sales strategies.
The company's growth ambitions also include global geographic expansion. Presently, Enable has a workforce of approximately 550 individuals spread across the U.S., Canada, Europe, and Australia. Despite generating less than half of its revenue in the U.S., the company aims to further establish its presence in international markets.
Andrew Butt, who steered the company through its early years without venture financing, remains focused on growth despite macroeconomic conditions. Butt highlighted the company's resilience and its ability to capitalize on market gaps, expressing optimism about sustaining momentum on such a remarkable scale.
Lightspeed Partner Arsham Memarzadeh spearheaded the investment round, emphasizing the continued confidence of existing investors in Enable's potential. With a strong base, a rising valuation, and long-term goals for integrating AI and going global, Enable looks like it will be able to stay successful in the rebate management software market.