The Growth of AP Automation SaaS: How to Expand?

The Accounts Payable (AP) Automation Software as a Service (SaaS) market is one sector of SaaS Oakstone has had extensive experience working in – we've hired over 200 people within and around this sector. 

With projections indicating a surge from USD 6.67 billion in 2022 to USD 13.80 billion by 2029, showcasing a robust CAGR of 10.9% (source: Fortune Business Insight), this rapid expansion is fuelled by the increasing adoption of technology in AP automation processes, where 69% of professionals leverage technology for spend analysis and procure-to-pay (P2P), according to Gartner.

While the adoption of artificial intelligence (AI) lags at 8%, the industry is witnessing substantial interest and investment, making it a hotbed for innovation and business opportunities.

The forthcoming changes in EU legislation have also put AP Automation at the top of most CFOs' agendas.

Past Success Stories and Funding Rounds

Past exits and significant financing rounds reflect the procurement market's potential. Ariba, acquired by SAP for a staggering $4.3 billion in 2012, and Coupa, which achieved a $1.7 billion valuation in just ten years post-IPO in 2016, exemplify the sector's success (source: Vizibl).

AP automation companies are attracting substantial venture capital (VC) funding, with Tradeshift raising a noteworthy $250 million in a Series E round in 2018.

An Overview of VC Funding in AP Automation, Procurement & E-Invoicing Solutions

A closer look at the landscape reveals that 210 procurement-focused companies in Europe and North America, founded between 2009 and 2020, collectively raised close to €30 billion in VC funding. This significant figure is particularly impressive, considering the procurement industry was not always in the spotlight.

The data highlights the overall attractiveness of procurement to venture investors and provides insights into where investments are concentrated. In 2010, only one VC deal was identified across Europe's procurement space. In contrast, 2020 witnessed 31 deals, with total capital raised exceeding €415 million (source: Maersk Growth).

When should you consider a recruitment partner?

Simply when your existing and trusted network cannot keep up with the supply or demand to bring great people into your organisation – it's at this point you'll need support and working with industry leaders will ensure fast, reliable and sustainable results.

It's also vital to ensure this support comes from a company that is tried and tested with hiring for your business size, as cultural fit will always be a key element to any great hire.

Why Oakstone International Executive Search?

The need for skilled and experienced professionals has never been more critical. Oakstone International Executive Search has proven to be a trusted partner in building high-performing teams for procurement SaaS businesses. A standout example is our collaboration with Coupa, where we successfully facilitated hiring over 110 individuals.

As the procurement SaaS market continues its upward trajectory, businesses operating in this space must strategically expand their teams to stay ahead of the competition. Oakstone International, with its track record of success and industry expertise, emerges as the ideal partner for procurement SaaS companies seeking to build dynamic, skilled teams. By leveraging our extensive experience and network, businesses can confidently navigate the market, ensuring sustained growth and success in the dynamic world of AP Automation SaaS.

Explore Oakstone’s Spend Management hiring capabilities.

Explore some of the AP automation companies Oakstone has assisted:

- Coupa

- Basware

- ServiceMax

- Tradeshift

- Vendavo

- Synertrade

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Written by Andy Strong, Oakstone Divisional Director.

Andy Strong joined Oakstone in 2007, having established and built Oakstone’s second UK office, based on the south coast of England. He’s built a team of highly skilled consultants that have demonstrated steadfast delivery capability in working with market-leading cloud-based, B2B enterprise application vendors across all of EMEA.