SirionLabs raises USD 4.7 million in Series A funding from Sequoia Capital
Gurgaon, India and Troy, Michigan, USA – SirionLabs, founded to radically simplify governance of strategic suppliers, announced today that it has secured US$ 4.7M in Series A funding from Sequoia Capital. SirionLabs will use this investment for R&D and to accelerate market and product development plans. The company also announced that Shailendra Singh, Managing Director at Sequoia Capital, joined the SirionLabs board of directors.
SirionLabs was founded in 2012 by UnitedLex founder Ajay Agrawal and industry veteran Claude Marais to tackle the problem at the root of most strategic supplier engagements: hard value leakage on the buy side ranging from 8-12% of the annual contract value (ACV) which arises from inadequate governance and poor vendor management on an on-going basis. Leading IT suppliers, including Indian players who deliver about $200BN of services annually to global customers, face similar problems on the delivery side with the gap between ‘what was supposed to happen’ and ‘what they actually deliver’ driving a revenue leakage ranging from 3-7% as a combination of service level penalties, under-invoicing and early terminations. Our flagship product– Sirion – offers best-in-class functionality for managing the entire strategic supplier management lifecycle– contract, performance, finance, risk, relationship and consumption management – that allows buyers and suppliers alike to stay on top of these complex service arrangements and thereby minimize spend and revenue leakage. Its flagship product – Sirion – was released in September 2013 and went live with a Fortune 500 financial services company as the first client. There are other Fortune 1000 companies in the contracting and implementation phases.
“Strategic supplier spend, in excess of $1 trillion annually experiences an estimated hard value leakage of $80-120 billion just on the buy side. Traditional procurement and service delivery products cannot be improved to address this problem because they are simply not geared to bring all the key disciplines of post-signature supplier management into a single platform. Further, they lack the ability to bring the enterprise focus down to the obligation level where the real value leakage takes place. SirionLabs’ mission is to deploy this approach to radically simplify the procurement of strategic services and bring its unfulfilled promise of increased savings and efficiency to organizations of all sizes.” said Ajay Agrawal, CEO and co-founder. “Now, with Sequoia on our team, we have additional company building assistance to create a market leading company.”
“For us, SirionLabs is one of those instances, where we have experienced entrepreneurs, Ajay and Claude, who know exactly what they are doing. They are arguably amongst the most qualified professionals in the world who could be pursuing this opportunity, given their respective backgrounds. Not surprisingly, Sirion’s early market validation has been terrific. We believe SirionLabs can become a very large SaaS company in the vendor governance and vendor management space, in the post-procurement phase of sourcing.” said Shailendra Singh.
About Sequoia Capital:
Sequoia Capital in India currently manages funds capitalized at close to USD 1.4 billion and invests across venture, growth, and late stage opportunities. It takes a long-term view on investments and plays the role of an active, value-added partner to entrepreneurs, business families and management teams. Over the past 7 years, Sequoia Capital has invested in more than 70 companies in India including Capillary Technologies, Druva Software, Justdial, Micromax, Mu Sigma, Pine Labs, Prizm Payments, Quick Heal and Zomato. Sequoia Capital operates out of offices in Bangalore, Mumbai, and New Delhi.
Globally, Sequoia Capital has an unparalleled track record of partnering with entrepreneurs to create global market leaders. Sequoia Capital has been an early investor in companies such as Apple, Cisco, Dropbox, Google, LinkedIn, Oracle, Yahoo, YouTube and Zappos. Sequoia Capital maintains dedicated teams in USA, China, India and Israel.
For more information, please visit: www.sequoiacap.com