More than 4.5 million users worldwide are growing their businesses with Odoo
GRAND-ROSIÈRE, BELGIUM and SAN FRANCISCO, CA (December 17, 2019) @OpinePR – Odoo, a leader in open source all-in-one business software, announced today that it has closed a $90 million minority investment led by global growth equity investor Summit Partners, with participation from Odoo’s executive management team and existing investor SRIW and its affiliate Noshaq. New investor Summit Partners joins management and current shareholders, including SRIW, Sofinnova and XAnge in supporting Odoo’s rapid product development pace and continued global expansion.
With more than 4.5 million users worldwide, Odoo is the most installed business software in the world. The company’s solutions are designed to support businesses of all sizes, with a flexible, fully-featured, and integrated suite of applications to run and manage all aspects of a business. Odoo’s functionality encompasses traditional ERP, including accounting, stock, manufacturing and CRM, as well as broader business needs such as project management, marketing, human resources, website, eCommerce, point-of-sale and more. With a modular approach, Odoo provides affordable, customizable and easy-to-use software that scales with business needs as a company grows.
“My goal in founding Odoo was to make a difference. I wanted to create software that powers the growth of businesses and changes the world,” said Fabien Pinckaers, Odoo Founder and CEO. “In order to achieve this, we’ve had to work hard, build a team and innovate at every turn. I’m incredibly proud of where Odoo is today and the passionate community we have built – and we’re just getting started.”
Since 2015, Odoo has operated with an open core business model that combines its open-source product, Odoo Community, with a suite of proprietary core apps through Odoo Enterprise. In addition to the 30 applications offered in Odoo Enterprise, Odoo’s community of 20,000 active members worldwide has contributed more than 16,000 apps that cover a broad spectrum of business needs. With revenue growth consistently above 50% over the last ten years, Odoo is one of Belgium’s leading technology success stories. To support the company’s growth and global expansion, Odoo has grown its team to 750-strong, including the addition of more than 300 team members in 2019. Odoo operates international offices in San Francisco, India, Hong Kong and Dubai to support a global customer base.
“In our experience, traditional ERP is expensive and frequently fails to adapt to the unique needs of dynamic businesses. With its flexible suite of applications and a relentless focus on product, we believe Odoo is ideally positioned to capture this large and compelling market opportunity,”said Antony Clavel, a Principal with Summit Partners who has joined the Odoo Board of Directors.
“We are thrilled to partner with Fabien and his visionary team for this next phase of growth,” added Han Sikkens, a Managing Director and Head of Europe at Summit Partners.
“As an early investor in Odoo, we are delighted to reaffirm our support in the company’s continued expansion,” said Damien Lourtie, General Manager of W.IN.G (SRIW Digital) and a member of the Odoo Board of Directors. “We are proud to support this impressive leadership team – a team than has successfully scaled Odoo from its roots in Belgium to the global business that it is today.”
Odoo was advised by financial advisory firm Lazard.
“When I started Odoo 15 years ago, my dream was to take on the ERP market with software that could help small to medium-sized companies. I wanted that solution to be easy, open-source, and affordable. I was young; I probably didn’t realize all that it would entail to take on such a challenge. I’m not going to lie, it wasn’t always easy, but everything was for the best. The hard times made us what we are today, we always strive to fix our issues. That comes from the survival instinct we learned in the early days.” – Fabien Pinckaers, founder and CEO of Odoo
Today’s announcement of a new investment led by Summit Partners gives us an opportunity to reflect on Odoo’s story and the path that brought us where we are today.
In 2010, a few years after our start, Odoo needed funds to accelerate its growth and began looking for investors. Few were willing to join the adventure: “Open source is risky,” “SME’s don’t bring enough money,” “it’s crazy to go after SAP, Dynamics and others who have unlimited funds.”Odoo heard it all. Fortunately, Odoo finally found investors in Sofinnova and Xavier Niel (Founder of Iliad, trading under the Free brand). They were the first to believe in Odoo. Thanks to them, Odoo could finally grow.
Another significant turning point occurred in 2014 when Odoo sought to move from its existing business model to a cloud (SaaS) based model, focusing on being the editor of Odoo first and foremost. It’s a pivotal moment in the history of our company and finding investors willing to join Odoo at that point was not easy either. Fortuitously, we crossed paths with XAnge and the SRIW, a Belgian public fund. Thanks to them, Odoo was able to pivot its business model and begin the transformation to the Odoo of today. Without their support, Odoo wouldn’t be where it is today. They were there at the critical moment of Odoo history.
Today, five years later, the numbers speak for themselves. The trust of Odoo’s original investors has paid off. With more than 750 employees, offices all around the world, thousands of partners, a growth of 50% every year, and a target to hire 450 employees next year, Odoo is clearly on the right track.
Odoo also proved that it could change the SME world. With 4.5 million active users, Odoo users are not just ordinary users; they are fans. People are happy using Odoo. Not many ERPs can claim that.
Odoo created something unique. Traditional ERPs are extremely complex solutions; they don’t answer to what an SME needs; no other solutions in the market could create software that worked for them. The SME market that was deemed irrelevant and impossible to monetize just a few years ago is now the market to get. The future of business software is in an intuitive, affordable solution that improves the daily life of its users.
This transaction between Summit Partners, the management of Odoo, and our existing investors serves as further validation of our success. Odoo is on the right track.
Of course, there’s still so much to do and so much to achieve. This is just the beginning of the story. The market for business software is a vast, blue ocean. Odoo and Summit will tackle this challenge head-on.
“I believe so much in Odoo that I did something that everyone thought was crazy: I re-invested my own money into the company along with Summit, and I’m not alone. The executive management of Odoo all pitched in and took on loans to re-invest in Odoo. This is the opposite of the usual cash-out. At Odoo, we cash in! When people ask why, I want to say why the hell not? Wouldn’t you want to invest in what you believe is going to be the next big thing? I’m happy that this feeling is shared!”
Odoo is a leading provider of all-in-one, open source business software for small and medium sized businesses worldwide. Founded in 2005, Odoo thrives in a unique and fully open ecosystem combining the resources of its community and partners to deliver a full range of easy-to-use, integrated and scalable business applications. Odoo has offices in the U.S., Belgium, Luxembourg, India, Hong Kong and Dubai. For more information, please visit: www.odoo.com.
About Summit Partners
Founded in 1984, Summit Partners is a global alternative investment firm that is currently managing more than $19 billion in capital dedicated to growth equity, fixed income and public equity opportunities. Summit invests across growth sectors of the economy and has invested in more than 500 companies in technology, healthcare and other growth industries. Notable technology and software companies financed by Summit Partners include Acturis, Avast, Darktrace, FLEETCOR, Flow Traders, Infor, Klaviyo, Ogone, RELEX Solutions, Smartsheet and Trintech. Summit maintains offices in North America and Europe, and invests in companies around the world. For more information, please see www.summitpartners.com or follow on LinkedIn.
SRIW (Société Régionale d'Investissement de Wallonie) provides equity and/or debt to companies that generate added value and employment in Wallonia (Belgium) ($3 billion under management). For the last 40 years, SRIW has been facilitating the region's economic development, contributing effectively to the modernisation, growth and restructuring of the businesses that make up the Walloon industrial network. For more information, please visit: www.sriw.be
XAnge is a Franco-German Venture Capital team with €450m under management, investing in Digital technologies, Deep tech and Impact entrepreneurs. XAnge is part of Siparex, a leading French private equity group. XAnge is a proud investor in Evaneos, Chauffeur Privé, Ledger, or Fidor. FindMyVC.io - www.xange.fr - Twitter @XAngeVC
In the United States of America, Summit Partners operates as an SEC-registered investment advisor. In the United Kingdom, this document is issued by Summit Partners LLP, a firm authorized and regulated by the Financial Conduct Authority. Summit Partners LLP is a limited liability partnership registered in England and Wales with registered number OC388179 and its registered office is at 11-12 Hanover Square, London, W1S 1JJ, UK. This document is intended solely to provide information regarding Summit Partners’ potential financing capabilities for prospective portfolio companies.
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