Alphabet's VC arm backs little-known SAP rival Odoo, boosting valuation to $5.3 billion

Core Insights - Odoo, a Belgian enterprise software startup, has increased its valuation to 5 billion euros ($5.3 billion) following a secondary share round led by Alphabet's venture fund and Sequoia Capital [1][11] - The company specializes in open-source enterprise resource planning (ERP) software, offering over 80 applications for various business needs [2] - Odoo is experiencing significant growth, with a revenue increase of 50% year-over-year and billings projected to exceed 650 million euros by 2025, aiming for over 1 billion euros by 2027 [3][7] Company Overview - Odoo's CEO, Fabien Pinckaers, emphasizes the complexity of the ERP market, noting that small businesses require simple and affordable solutions [3] - The company has a unique business model, with 80% of its revenue coming from open-source software and 20% from licensed software [8] - Odoo has not raised primary capital in a decade, relying instead on secondary sales for funding, with the last primary funding round occurring in 2014 [10][11] Market Position - Odoo is positioned as a competitor to larger ERP providers like SAP, which are often seen as complex and expensive for small businesses [3] - The market for ERP solutions is described as fragmented, presenting opportunities for Odoo to capture a larger share by simplifying offerings for small enterprises [3][4] Future Plans - Despite being at a scale suitable for an IPO, Odoo's management is not in a rush to go public, valuing the flexibility of remaining private for long-term investments [9][10] - The company is actively expanding its presence in India, focusing on hiring and marketing efforts to broaden its partner network [6]