KKR Takes Majority Stake In OneStream Software; Gives It A More Than $1B Valuation

OneStream Software, the Rochester, Michigan software company focused on simplifying the consolidation, planning, reporting and analyzing of financial data, has raised hundreds of millions of dollars in funding from private equity firm KKR.

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With the investment, which people familiar with the matter told the Wall Street Journal was more than $500 million, OneStream has a valuation of more than $1 billion, becoming the latest software unicorn or startup valued at $1 billion or more.

OneStream Software has been in the market since 2010, going up against the traditional software players including Oracle and SAP as well as niche startups like Anaplan, which makes financial planning software and Workiva, the financial reporting software company. It counts heavy hitters United Parcel Service and Sagent Pharmaceuticals among its customers more than 300 customers.

KKR and OneStream Software are betting that chief financial officers want to shift to a model in which all of the financial business apps can be handled on one platform. As it stands, CFOs typically use different software to handle specific needs whether is planning or accounting, making the processes more complex. With the funding, OneStream Software can continue to pursue that goal and at the same time have the cash necessary to support its growth.

In a blog post confirming the investment from KKR and OneStream’s valuation, Tom Shea, President, and Chief Executive Officer said that from the start and all the way through 2018 it opted to bootstrap the company, relying on no external investments. Over the past three years, it has grown close to 500%, all the while maintaining profitability. But as it approached the $100 million in revenue mark, and with plans emerging to reach $500 million in sales, it decided it was the right time to raise funding.

“All investors can provide funding, but we were looking for an investor that would also be a partner and a strategic advisor. A partner that takes a long-term approach to their investments, believes in our commitment to customer success, our vision, and in our leadership team,” wrote Shea. “Successful firms like KKR don’t invest in your past, they invest in your future. One of the things that was important to me in an investor was finding an investor that truly understands the power of our platform and believes, as we do, that it has the potential to truly disrupt the market.”