Zip Line Secures $43 Million in Funding at a Valuation of $1.2 Billion Amid Rapid Growth as a Concierge Service for Procurement
The process of making a purchase within a business can be a lengthy and cumbersome one, involving multiple departments and a lot of back-and-forth. However, a pair of Airbnb alumni has teamed up to build a software business that aims to dramatically simplify this process, becoming in their words, a "concierge for procurement." That startup is Zip, which has recently raised $43 million in a Series B round of funding led by YC Continuity at a $1.2 billion valuation.
A Brief History of Zip
Zip was founded in 2020 by Rujul Zaparde and Lu Cheng, both of whom have extensive experience in the startup world. Zaparde previously co-founded FlightCar, a car-sharing company that shuttered and sold its technology to Mercedes-Benz in 2016. He had dropped out of Harvard at the time to help grow that business. Later, while working in product management at Airbnb, Zaparde met engineering head Lu Cheng. The two stayed in touch when Zaparde then worked at Y Combinator as a visiting partner for about a year before teaming up to build Zip.
The Problem That Zip Seeks to Solve
According to Zaparde, the problem that Zip seeks to solve is how laborious and time-consuming a procurement request can be. "If we needed to buy software for say $100,000 or work with an agency or hire a contractor, there was no clear one place to go to kick off that type of request," he recalls. "The approval process was going to be across a plethora of teams. So we started Zip to solve what we call the intake-to-procure process."
How Zip Works
Zip is a SaaS offering that runs in the cloud, providing a no-code interface for building approval workflows within the product. Specifically, it has focused its workflow capabilities on solving the intake-to-procure problem. The goal is that any employee who has a procurement request can go to Zip to initiate that request using its configurable workflow tools.
The Benefits of Using Zip
According to Zaparde, using Zip can have several benefits for businesses. "With Zip, users can easily create and manage their own workflows, ensuring that the right stakeholders are involved at each step," he explains. "This not only streamlines the procurement process but also provides a clear audit trail of all activities."
The Future of Procurement
Zip’s vision is to become the go-to solution for businesses looking to simplify their procurement processes. With its concierge-style software, it aims to make procurement more efficient, effective, and transparent.
Investment and Growth
In its latest funding round, Zip raised $43 million from YC Continuity at a $1.2 billion valuation. This investment will be used to further develop the company’s product and expand its sales and marketing efforts.
Conclusion
Zip is revolutionizing the way businesses approach procurement by simplifying the complex process through its concierge-style software. With its no-code interface and configurable workflow tools, it makes it easy for employees to initiate procurement requests and manage them efficiently. As a result, Zip is poised to become the go-to solution for businesses looking to simplify their procurement processes.
About the Author
Mary Ann Azevedo is a senior reporter at TechCrunch, covering enterprise and fintech topics. She has more than 20 years of business reporting and editing experience for publications such as FinLedger, Crunchbase News, Crain, Forbes, and Silicon Valley Business Journal.
