Procurement technology provider Zip has secured $190m in a Series D funding round, raising its valuation to $2.2bn.

BOND spearheaded the investment round, which also saw participation from new investors DST Global, Adams Street, and Alkeon, alongside existing backers Y Combinator and CRV.

This funding “marks the largest investment in procurement technology” in more than two decades, the company noted.

The company intends to use the funding capital to bolster its research and development works, focusing on establishing advanced procurement software in-house. This will also include expanding the Procure-to-Pay product line of the company.

Zip, co-founded in 2020, focuses on overhauling the complex procurement process by introducing a consumer-grade user experience to B2B purchasing.

The company offers a single platform, which aids in streamlining various procurement functions including intake, sourcing, supplier management, purchase orders, and global payments.

This integration offers businesses transparency and control over the entire procurement lifecycle, aiding organisations to optimise their purchasing processes.

The funds will also be allocated to establish a Zip AI lab, focused on accelerating the development and deployment of advanced AI solutions that seamlessly integrate with existing enterprise systems.

Zip’s current AI suite has significantly enhanced procurement processes across legal, security, finance, and IT departments.

Additionally, the investment will support expanding Zip’s global presence, particularly in the EMEA region, where the company has seen over 200% growth in the past year.

With a new London office and an expanded team in the region, Zip aims to meet increasing demand across the UK, Germany, and France

Commenting on the investment, BOND general partner Jay Simons said: “Zip is one of those rare opportunities in enterprise software that doesn’t come along often.

“What sets Zip apart is its relentless focus on customer success and product innovation, which in today’s tough macro environment, is exactly what enterprises need to drive efficiency and rein in costs. The team has built a product so essential that it’s quickly becoming the go-to platform for the world’s biggest companies. We’re confident Zip is primed to be a staple in every Fortune 500 tech stack.”