Software leader strengthens position in the SME market with major investment.
Belgium-based tech powerhouse Odoo S.A., a leading provider of integrated business software, has announced a 500 million euros transaction. This investment round was led by prominent names such as CapitalG and Sequoia Capital, with additional backing from BlackRock, Mubadala Investment Company, HarbourVest Partners, AVP, and Alkeon.
The secondary capital transaction elevates Odoo’s valuation to an impressive 5 billion euros, further solidifying its status as a unicorn. The deal underscores strong investor confidence in the company’s vision and impact. Current investors, including Summit Partners, Noshaq, and Wallonie Entreprendre, sold part of their shares in this round, though Summit remains Odoo’s largest institutional shareholder.
Leading the SME software market
Since its founding in 2002, Odoo has revolutionized the SME software landscape with an intuitive and accessible suite of business applications. With more than 13 million users worldwide and 7,000 new customers signing up each month, the company has firmly established itself as a leader in the industry.
According to Fabien Pinckaers, Odoo’s CEO and founder: “Our mission is to help businesses around the world optimize their processes, drive innovation, and scale efficiently. This investment supports our ambition to continue setting the standard for SME software.”
Odoo’s solutions are renowned for their ease of use and robust functionality, allowing businesses to focus on core activities like customer satisfaction and growth.
Growth trajectory and future plans
Odoo is experiencing 40 percent annual growth and expects to surpass 650 million euros in revenue within the next 12 months. The company aims to reach 1 billion euros in revenue by 2027. With 15 subsidiaries and a global network of 7,500 partners, Odoo has significantly expanded its international footprint.
Andrew Reed, Partner at Sequoia Capital, lauds the company: "Odoo has built an exceptional ecosystem and product portfolio. Its potential to transform the SME software market is immense, and we’re thrilled to collaborate with Fabien and his team as they enter their next growth phase."
This transaction is not just a financial milestone but a testament to Odoo’s unique position in the market. The company continues to attract investor interest, following previous investments by Summit Partners in 2019, 2021, and 2022.
The latest investment will fuel Odoo’s research and development capabilities and drive faster innovation in its product offerings.
Alex Nichols, Partner at CapitalG, emphasized: "With its innovative business apps and unique culture, Odoo is well-positioned to shape the future of SME software. The best days for this company are still ahead."
Conclusion
Odoo’s impressive growth and new 5 billion euros valuation mark a significant milestone for the Belgian unicorn. With this latest investment, Odoo is poised to expand its global reach further and continue redefining the SME software market.
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