(Bloomberg) -- ZipHQ Inc., a startup developing AI-powered software for businesses buying goods and supplies, has raised $190 million from investors at a $2.2 billion valuation.
The round was led by new investor BOND, with participation from firms including DST Global, Y Combinator and CRV. The new valuation is a significant bump from the $1.5 billion value investors gave the startup last year.
Zip’s technology helps organizations manage the process of buying goods and services. Founders Rujul Zaparde and Lu Cheng started the company after working together at Airbnb Inc., and witnessing how difficult it was to try to complete business purchases.
Zip’s product aims to replace manual processes, handling tasks like spreadsheets and intake, and simplifying approvals across departments like finance, legal, IT and security.
“No business works alone, every enterprise relies on more and more suppliers,” Zaparde said in an interview.
Zip will use the funds to invest in engineering and research and development. That includes establishing an internal lab to create new AI-powered tools faster. The company plans to expand in Europe, Middle East and Asia, after recently opening an office in London.
Zip counts Snowflake Inc., OpenAI, Reddit Inc. and Databricks Inc. among its customers, the company said.
The deal comes as funding for enterprise software startups has bounced back from post-pandemic lows, thanks in large part to the current boom in AI development, according to PitchBook. In the second quarter of 2024, software startups raised $21.9 billion across 713 deals, the highest quarterly deal value in the sector in over a year.
--With assistance from Katie Roof.
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