SirionLabs, an enterprise software-as-a-service provider, has raised $44 million in fresh funding led by Tiger Global and Avatar Growth Capital, in a deal estimated to value the Gurugram-based company at more than $220 million.
The investment marks New York-based Tiger Global’s continued bullishness in India’s fast-growing software products sector. It also comes at a time of overall slowdown in funding because of the Covid-19 pandemic.
SirionLabs, which focuses on the contract management space, competes with US-based Apttus, which recently acquired rival Cogna in a deal valued at $715 million. It is also a competitor to Pune-based Icertis in the contract management sector. Icertis became India’s third SaaS unicorn last year with an estimated worth of $1.5 billion.
Ajay Agarwal, co-founder and chairman of SirionLabs, told ET that the company has seen increased interest from customers for its product amid the ongoing crisis, without specifying whether that would lead to increased revenue for the company.
He said the company had crossed the $25-million annual recurring revenue (ARR) target and was on track to double that over the course of the next one year.
SirionLabs said it will use the fresh capital to expand its products and strengthen its leadership team by bringing in experts in Artificial Intelligence and other fields, from leading technology companies.
“We’ve just launched a new laboratory in Seattle with about 20 scientists and the idea is to build a network version of our AI-engine that can operate at scale. We’re partnering with the leading law firms of the world as our partners to launch this transaction monitoring engine,” Agarwal said.
The company has developed intellectual property and has applied for patents in the area of AI for its permissioned ledger and automated validation processes.
“Complex services represent a multi-trillion global market but contracting and governance continue to be cumbersome manual processes. SirionLabs has spent several years in developing proprietary AI-enabled performance and invoice reconciliation capabilities to address these inefficiencies head-on,” said Vishal Bakshi, Founder and Managing Partner at Avatar Growth Capital.
The company earns around 80% of its revenues from the US and European markets, servicing sectors such as banking, financial services and insurance (BFSI), telecom, pharmaceuticals, oil and gas and the public sector. It counts enterprises such as Vodafone, Unilever, BP and Credit Suisse as customers.
The Series C investment brings SirionLabs’ total equity raised so far to $66 million, with other investors on its cap table including VC giant Sequoia Capital.
Tiger Global, which had reduced its investments in India after taking home around $3 billion from Flipkart’s sale to Walmart, made a comeback last year, backing SaaS firms such as Zenoti, Locus and Fyle. With its latest investment in SirionLabs, the investor is maintaining its bet on India’s software product companies as valuations in the sector have soared.