On Tuesday, software purchasing startup Tropic announced it raised a $40 million Series B round led by VC giant Insight Partners. The round brings Tropic’s total funding raised to $67.1 million to date, according to the company.
The company’s last round was a $25 million Series A raise in August. Since then, Tropic has doubled its revenue and the size of its product and engineering teams.
Despite raising capital just five months ago, Tropic CEO and co-founder David Campbell told Built In that now was the right time to take on additional funding because the company has “ambitious goals for expansion in a number of different areas.”
The fresh funding will go toward building Tropic’s global consumer reach and advancing its product research and development. A portion of the funding will also allow the company to launch software modules and nearly double its 90-person team.
“Our employees are some of the smartest, brightest, most ambitious people that I’ve ever met. We have a really great [company] culture where everyone gets a seat at the table and everyone gets to contribute,” Campbell told Built In.
Large enterprise consumers such as Notion, Zapier, Nextdoor and Flatiron Health use Tropic to purchase affordable software that gives them tools to manage contracts, monitor usage and acquire goods.
“Products used to be all made of hardware. Procurement teams needed to buy screws to put together cars for Ford, or needed to buy plastic to put onto planes for Boeing. Now, procurement teams need to buy software to build other software products,” Campbell said. “There’s a ton of nuance involved in buying software, which makes it a really labor-intensive and painful process.”
Tropic’s technology helps users easily buy licenses, renew contracts, add new software and cancel agreements.
“Buying software is not transactional. It takes work. Before Tropic, our process was labor-intensive and inefficient,” Ryan Roccon, vice-president of finance at Zapier, said in a statement.
