Odoo, an integrated business software solution provider has secured $526 million in secondary transaction led by CapitalG and Sequoia Capital, with participation from BlackRock, Mubadala Investment Company, HarbourVest Partners, AVP, and Alkeon.
As part of the transaction, existing investors Summit Partners, Noshaq, and Wallonie Entreprendre are selling a portion of their shares; Summit will remain Odoo’s largest institutional shareholder.
“Fabien and his team have built a one-of-a-kind business from their ambitious vision for a unified suite of tightly integrated business apps. Odoo’s powerful and easy-to-use suite of apps has won over customers across more than 100 countries and virtually every industry, as well as companies with anywhere from one to thousands of employees. The team’s two decades of dedication and long-term thinking has fostered a robust community of partners, contributors, and users that will serve as their foundation for years to come. We are thrilled to partner with Fabien and the rest of Odoo’s leadership team,” said Alex Nichols, partner at CapitalG, the independent growth firm of Alphabet Inc., Google’s parent company.
“Odoo has built an outstanding software company with a unique culture, product suite, and ecosystem. Odoo is a tremendous business already, and it feels like their best days are still ahead. Odoo has the long-term potential to transform the SMB software market and deliver enormous value to customers. We’re excited to partner with Fabien and the Odoo team for the long-term,” said Andrew Reed, Partner, Sequoia Capital.
“ERPs are traditionally expensive and resource-intensive to implement, often failing to meet the actual needs and evolving requirements of SMEs. We have developed a unique value proposition that is playing a pivotal role in the market,” said Fabien Pinckaers, founder and CEO of Odoo S.A.
Faris Al Mazrui, Head of Growth at Mubadala, said, “Odoo stands out as a prime example of innovation in global software, offering scalable, adaptable solutions that empower businesses in the digital and cloud transformation journey. With Mubadala’s expertise in software investments and the UAE’s role as a fast-growing tech hub, we see Odoo as an exceptional partner for companies adapting to cloud and AI megatrends. We’re excited to support their growth worldwide.”
“Odoo continues to deliver solutions that we believe are helping to transform the business software landscape – and they are doing so with impressive traction. We are delighted to welcome new investors and look forward to working together to support Odoo’s exciting growth trajectory,” added Antony Clavel, a Managing Director at Summit Partners who has served on the Odoo Board of Directors since Summit’s initial investment in 2019.
“We are expecting to open five new subsidiaries within the next three years across Europe, Latin America and Asia-Pacific,” said Sebastien Bruyr, Odoo S.A. Chief Commercial Officer.
Odoo’s Chief Finance Officer, Alessandro Mazzocchetti, added, “I’m confident that Odoo will remain profitable in terms of EBITDA and Cash Flow as we expand our team and global reach. We will keep working hard to serve our customers and partners!”.
For Olivier Vanderijst, CEO of Wallonie Entreprendre (WE) said, “The visionary and strategic nature of Odoo’s management and the rigour with which it has implemented this vision have led to an incredible valuation of 5 billion euros, which has attracted the best investors in the world. This is why WE has signed this transaction, while remaining a shareholder in the company to support its future growth as a local player.”
Founded in 2002, Odoo provides a range of integrated, scalable and functional applications, Odoo offers a comprehensive, modular suite that meets the specific needs of every business, making it a suitable solution for organizations of all sizes and sectors, from start-ups to large corporations.
Odoo claims to have over 13 million users and currently adding more than 7,000 new clients each month.
Odoo achieved sustained annual growth of 40% and is projected to exceed $683 million in billings within the next 12 months, with a target of reaching €1 billion by 2027. The company has strengthened its global presence by establishing 15 subsidiaries and building a network of 7,500 partners worldwide. With this latest investment, Odoo S.A.’s valuation has reached €5 billion.
With billings of 370 million euros in 2023, estimated at €500 million over the next 12 months, Odoo employs nearly 5,000 people worldwide, including more than 1,200 in Belgium. In addition, the company has built over 7,500 partners, creating more than 30,000 business-related jobs in 130 countries. With 19 offices worldwide (Belgium (5), Luxembourg, Spain, Germany, Hong Kong, India, Australia, USA (2), Mexico, Kenya, Dubai, Indonesia, Brazil, Italy).
