Zip line raises 43 million dollars in funding valued at 1.2 billion as it expands its concierge for procurement services
The process of making a purchase within a business can be long and arduous, involving multiple departments and numerous back-and-forth communications. Two Airbnb alumni have joined forces to develop a software solution aimed at dramatically simplifying this process. Dubbed Zip, the startup has secured $43 million in a Series B funding round led by YC Continuity at a valuation of $1.2 billion.
A Brief History of Zip
Zip was founded in 2020 by Rujul Zaparde and Lu Cheng, both veterans of the tech industry. Before co-founding Zip, Zaparde had previously worked on another startup, FlightCar, which was acquired by Mercedes-Benz in 2016. During his time at Airbnb, he met Cheng, who would later become a key partner in the development of Zip.
The Problem Being Solved
Zaparde and Cheng identified a common pain point they experienced during their careers: the laborious and time-consuming procurement process. "If we needed to buy software for say $100,000 or work with an agency or hire a contractor, there was no clear one place to go to kick off that type of request," Zaparde recalled in an interview.
The approval process often involved multiple teams, which made it difficult to track and manage requests. This realization led them to develop Zip as a solution to the "intake-to-procure" problem.
How Zip Works
Zip is a Software-as-a-Service (SaaS) platform that runs entirely in the cloud. The product offers a no-code interface for building approval workflows within the platform, focusing specifically on solving the intake-to-procure problem. This means that any employee who requires a procurement request can initiate it using Zip’s configurable workflow tools.
The requester can "see a very crystal clear visual workflow of their requests and where it sits across all the cross-functional teams," according to Zaparde. The end result is increased visibility and an auditable trail, making it easier for stakeholders to track and manage requests.
YC Continuity’s Investment
YC Continuity led the $43 million Series B funding round, which values Zip at $1.2 billion. This significant investment reflects the startup’s growth and potential in simplifying procurement processes for businesses.
"The end-to-end visualization of the entire workflow, for all stakeholders, that can be changed on the fly, is unique and will be difficult for anyone to replicate," said an YC Continuity representative.
A Bright Future Ahead
Zip’s innovative approach to procurement has garnered significant attention in the industry. With its ability to streamline complex processes and increase transparency, the startup is poised to revolutionize the way businesses manage their procurement needs.
As more companies look for ways to simplify their operations and improve efficiency, Zip is well-positioned to capitalize on this trend. With its talented team and significant funding, the future looks bright for this ambitious startup.
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