German software-as-a-service (SaaS) platform Sastrify recently secured a significant investment of $32 million in a Series B funding round. The financing was primarily led by Endeit Capital and consisted of $22 million in equity funding and an additional $10 million in debt financing.
Sastrify intends to use this funding to expand its team both in the United States and Europe, as well as develop innovative product features to enhance its platform.
Sastrify, introduced in June 2020, offers a solution for businesses to purchase and efficiently handle their SaaS technology stack. It helps companies to manage their software expenses effectively. It does so by consolidating all its SaaS subscriptions in a single platform. Sastrify is part of a growing set of SaaS tools in Europe that assist companies in optimizing their costs.
According to Sven Lackinger, co-founder and CFO of Sastrify, the company has gained greater significance due to increased inflation and the challenging fundraising landscape. Lackinger explains that the cost-saving aspect played a crucial role in their successful fundraising efforts, as Sastrify aligned well with the market’s current demands. He refers to this alignment as a “product-zeitgeist fit”.
Startup analysis stated that most companies tend to exceed their intended budget by over 30% when it comes to SaaS expenses. In addition, they also invest around 400 hours annually in handling and managing their SaaS contracts.
The funding round for Sastrify was spearheaded by Dutch investor Endeit Capital, alongside Simon Capital joining as a participant. Notably, Sastrify’s existing investors, HV Capital, FirstMark Capital, and TriplePoint Capital, also showed their continued support by contributing to the investment.
Sastrify presently operates in six European sales regions alongside the United States. According to Lackinger, the team will prioritize the US market in the coming years after Series B funding.
As of now, Sastrify employs around 150-160 employees, but Lackinger anticipates this number to reach 230-240 by the end of next year. Additionally, they plan to allocate some of the funding to enhance their product by introducing new features such as a usage analytics tool.