London-based startup Vertice is making significant strides in the expense management sector by leveraging artificial intelligence (AI) to optimize corporate spending on software and cloud services. In response to the growing demand for efficient procurement solutions, Vertice has successfully raised $50 million in its latest funding round, which will be used to expand its business offerings and enhance its technological capabilities.

As businesses increasingly invest in software and cloud services—amounting to hundreds of billions annually—Vertice has demonstrated impressive growth, achieving a 13-fold increase in business over the past three years. The latest funding round was led by new investor Lakestar, with contributions from Perpetual Growth and CF Private Equity, as well as previous investors including Bessemer Venture Partners and 83North. To date, Vertice has secured approximately $100 million in total funding, though the specific valuation from this round has not been disclosed. However, CEO and co-founder Roy Tuvey noted that the valuation is higher than the “hundreds of millions” reported a year ago.

Tuvey emphasized that Vertice aims to standardize corporate procurement processes beyond just software and cloud services. Many businesses currently utilize a variety of procurement solutions, resulting in fragmented processes that impose significant burdens on procurement teams to reduce costs and enhance efficiency. To address these challenges, Vertice offers a unified platform designed to streamline procurement operations.

Image Source Note: Image generated by AI, licensed by Midjourney

The customer base for Vertice is steadily growing, with clients across Europe, the United States, and the Asia-Pacific region. Notable companies utilizing Vertice's services include ASML, Euronext, Grant Thornton, and Santander Bank.

Looking ahead, predictions from Gartner suggest that spending on data centers, software, and related IT and communication services is expected to surpass $5 trillion by 2025, driven by the increase in cloud computing and AI technologies, with growth rates exceeding 9%. This expansive market has attracted numerous competitors, including platforms such as Spendbase, Spendesk, Gartner, and G2.

What sets Vertice apart, according to Tuvey, is its ability to deeply integrate with corporate data, thereby gaining a better understanding of business needs. The company has developed a large software procurement model, akin to large language models, which generates recommendations based on actual software usage by organizations. Vertice has amassed approximately $3.4 billion in data related to SaaS and cloud spending, conducting benchmark analysis on over 16,000 software vendors.

Clients leverage Vertice to accelerate their procurement processes and realize significant cost savings. The platform claims it can reduce the procurement cycle by 50%, resulting in cost reductions of 20% to 30%. Tuvey explained that the company employs AI technology to extract vital contract information and create procurement assistance tools that automate previously manual tasks for finance teams. Additionally, AI is utilized to identify bottlenecks in procurement workflows, thereby optimizing the overall process.

As businesses seek to minimize operating costs, interest in Vertice's services is growing among investors. Georgia Watson, a partner at Lakestar, noted that several portfolio companies have adopted Vertice's solutions and provided highly positive feedback.

Key Points:

1. Vertice secures $50 million in funding to expand its AI-driven procurement management platform.
2. Clients include ASML, Santander Bank, and others across Europe, the US, and the Asia-Pacific region.
3. With AI technology, Vertice claims it can halve the procurement cycle, saving 20%-30% on costs.