Sastrify, a virtual Software-as-a-Service procurement service which helps digital-first companies to optimize their SaaS tools, has raised an approx. €5.9 million round of funding from HV Capital and the unicorn founders of FlixMobility, Personio and SumUp. This new financing follows an approx. €1.1 million pre-seed round in late 2020.
With an ever increasing number of highly specialized software-as-a-service (SaaS) products and more decentralized organisations, the startup states that efficient vendor management has become a top priority for modern companies, which spend a significant portion of their budgets on SaaS tools. In many cases, these companies do not know whether or not they are making the right choices which often leads to long decision times and significant overspending on SaaS. Additionally, the startup explains that they often maintain SaaS subscriptions that are redundant or underused.
Founded in 2020, Sastrify provides an automated procurement service that helps companies to buy the right SaaS solutions faster, negotiate competitive contracts and keep track of all subscriptions in decentralized organisations.
Sastrify’s value proposition has quickly resonated in the European market, where the company is serving unicorn startups like Gorillas and sennder. Sastrify’s clients enjoy an average 6.5X return on their investment in SaaS procurement services, plus the elimination of thousands of working hours wasted on activities related to SaaS procurement. With guaranteed savings and a platform that matches especially well with the needs of European tech companies, Sastrify claims to be the first choice for any growing company with more than 100 employees.
“Cloud software adoption is massively accelerating and almost every company nowadays uses SaaS products but does not buy and manage them efficiently. Sastrify’s astonishing growth underlines the broad customer value the team has already created ” said Jasper Masemann, a partner at HV Capital. “It is early days but Sastrify could create an SAP Ariba with a payment solution for SMB – a massive market just in Europe.”
The Sastrify team is also building and maintaining positive relationships with SaaS providers like Google and Miro. These relationships help Sastrify better serve its customers and the vendors by streamlining processes and bringing an experienced, trusted voice into negotiations. Sastrify even serves as a distribution partner of many SaaS products in the European market, which provides its customers with another option for buying discounted licenses.
The model of connecting companies with SaaS vendors in a way that streamlines negotiation processes has quickly delivered financial results for the company. Sastrify is already cash-flow positive only a couple of months after its initial launch.
“The more we talk to prospective customers, the more we realize just how widespread the need for SaaS procurement has become in the 21st century,” said Sven Lackinger, one of Sastrify’s co-founders. “We’ve experienced rapid growth because we can point to significant savings each and every one of our clients has realized through our services.”
Sastrify’s team of around 30 employees is currently working with a remote-first approach. The company’s leadership team will use this new round of funding to focus on sales, marketing and product development to bring its time- and money-saving services to more companies in Europe and beyond.