Icertis, a leading SaaS-based contract management company, has filed a Form D with the US Securities and Exchange Commission (SEC) to raise $50 million in fresh funding round. This round marks a crucial step in the company’s financial expansion, following its $150 million fundraising in 2022 through a revolving credit facility and convertible financing. Though the company has not disclosed the participating investors, past reports indicate that SoftBank might be involved. The fundraising effort highlights the continued investor interest in the SaaS industry, especially within AI-driven enterprise solutions. Icertis, which became a unicorn in 2019, is currently valued at approximately $5 billion and has raised over $522 million in total funding to date. The firm’s strong financials, with a 33% revenue growth in FY24 to Rs 863 crore and a profit of Rs 97 crore, reinforce its appeal to investors.
1. Understanding Icertis: Business Model and Revenue Streams
1.1 The Working Model of Icertis
Founded in 2009 by Samir Bodas and Monish Darda, Icertis specializes in AI-powered contract lifecycle management (CLM). Its flagship product, Icertis Contract Intelligence (ICI), helps businesses digitize, analyze, and optimize their contracts. The company integrates its solutions with ERP, CRM, HCM, and procurement systems, ensuring seamless contract governance across finance, legal, sales, and procurement.
1.2 Revenue Generation Strategy
Icertis operates on a subscription-based SaaS model, where enterprises pay a recurring fee for access to its contract management platform. Revenue streams include:
- Enterprise subscriptions: Long-term contracts with businesses using its AI-powered platform.
- Professional services: Custom implementation and training services for enterprises.
- Partnerships & integrations: Collaborations with tech giants like SAP and Microsoft for seamless software integration.
- Consulting services: Contract compliance and risk management advisory.
2. Funding History and Investment Strategy
2.1 Previous Funding Rounds
Icertis has consistently attracted investor interest, securing over $522 million in funding round . Key fundraising milestones include:
- 2019: Became a unicorn after raising $115 million in Series E, led by Premji Invest and Greycroft.
- 2021: Raised $80 million in Series F from B Capital Group, Meritech Capital Partners, and PSP Growth.
- 2022: Secured $150 million through convertible financing and a revolving credit facility from Silicon Valley Bank.
- 2024: Filed for a new $50 million fundraising round, signaling continued growth plans.
2.2 Investors and Valuation
The company’s valuation has surged to $5 billion, backed by investors such as SAP, SoftBank, Premji Invest, B Capital, and Silicon Valley Bank. The latest round will further strengthen its capital structure, possibly setting the stage for future IPO plans.
3. Financial Performance and Growth Metrics
3.1 Revenue and Profitability Trends
Icertis has shown impressive financial performance, with a strong revenue trajectory:
- FY24 revenue: Rs 863 crore, a 33% YoY increase from Rs 649 crore in FY23.
- Profitability: Net profit rose to Rs 97 crore in FY24, up from Rs 71 crore in FY23.
- Customer base expansion: Global enterprises across healthcare, financial services, manufacturing, and retail sectors.
3.2 Market Position and Competitor Analysis
Icertis is a market leader in contract management, competing with players like DocuSign, Conga, and Agiloft. Its differentiation lies in AI-driven automation, deep ERP integrations, and compliance-centric solutions tailored for large enterprises.
4. Industry Trends and the Future of SaaS Investments
4.1 SaaS Funding Landscape in 2024
The SaaS sector has witnessed a funding revival after the 2023 funding winter. Notable trends include:
- Indian SaaS startups raised $2.1 billion in 2024, a 31.25% YoY increase.
- AI-driven SaaS solutions are gaining investor interest, with startups like Ennoventure and Pulse raising fresh capital.
- Enterprise SaaS demand is surging, especially for contract automation, workflow optimization, and compliance solutions.
4.2 The Role of AI in SaaS Growth
AI-powered contract intelligence is reshaping enterprise software. Icertis leverages AI for:
- Automated risk assessment to reduce compliance risks.
- Predictive analytics for contract negotiations.
- Smart workflows to optimize legal and procurement operations.
5. Learning for Startups and Entrepreneurs
5.1 Key Takeaways from Icertis’ Growth
Startups can learn several key lessons from Icertis’ success:
- Innovate with AI: AI-driven automation creates scalable, high-value enterprise solutions.
- Diversify revenue streams: A strong mix of SaaS subscriptions, consulting, and partnerships ensures sustainable growth.
- Focus on enterprise adoption: Targeting large-scale enterprises results in long-term, high-value contracts.
- Strategic fundraising: Raising capital at the right time fuels expansion and product innovation.
- Global scalability: Expanding internationally enhances brand credibility and revenue potential.
6. The Startups News: Your Ultimate Source for Startup Insights
For entrepreneurs and investors seeking the latest startup news, The Startups News provides industry-leading insights on funding trends, venture capital, and emerging technologies. Covering success stories like Icertis funding round, our platform ensures you stay ahead of the competition with up-to-date market intelligence. Whether you’re tracking investment strategies or looking for startup growth blueprints, The Startups News is your go-to source for cutting-edge business insights.
