Odoo Secures €500 Million in Funding, Boosting Valuation to €5 Billion

Belgium-based software company Odoo has raised €500 million in secondary capital, positioning the company at an impressive valuation of €5 billion. In the funding round led by CapitalG and Sequoia Capital, Odoo has seen participation from such marquee investors as BlackRock, Mubadala Investment Company, HarbourVest Partners, AVP, and Alkeon. The capital raised will help Odoo further accelerate growth and extend its global reach while developing additional product lines that will consolidate its leadership place in the market.

Founded back in 2002 by Fabien Pinckaers, Odoo has taken over two decades to develop an all-inclusive integrated suite of business applications that help small and medium-sized businesses operate efficiently. Their software suite covers everything from the management of customer relations and human resources through to inventory management, accounting, and eCommerce. With over 13 million users worldwide, Odoo has itself now evolved into the leading SMB platform that is both affordable and scalable in one system.

Strong Growth and Global Expansion

Odoo is shown to have made tremendous growth from its current trajectory. It has been adding more than 7,000 new clients monthly, and it has achieved an annual growth rate of 40%. Odoo is set to outstrip €650 million in revenue over the next 12 months, and ambitious targets stand at €1 billion in billings by 2027. But this’s not all, as Odoo built international presence through the establishment of 15 subsidiaries and a network of 7,500 partners worldwide.

The company’s expansion is reflective of its increasing popularity among SMBs worldwide. By offering a broad range of integrated apps, Odoo helps businesses improve customer satisfaction, optimize processes, drive innovation, and scale operations efficiently. Unlike traditional enterprise resource planning (ERP) systems, which are often expensive and difficult to implement, Odoo’s platform is designed to be cost-effective and adaptable to the specific needs of small and mid-sized enterprises.

Investor Confidence and Future Growth

The latest funding round is an affirmation of investor confidence in the company’s potential. CapitalG, Alphabet Inc.’s growth firm, and Sequoia Capital support Odoo, as the latter demonstrates impressive growth and the capability to cater to various types and sizes of companies. As partner at CapitalG and, as Alex Nichols noted, Odoo just has a unified suite of applications, which has been adopted in more than 100 countries, the company’s long-term thinking and desire for community building position it to continue to thrive.

Andrew Reed of Sequoia Capital is also confident about the future prospects of Odoo. He mentioned that Odoo has immense potential to transform the SMB software market and provide substantial value to its customers. Recent launches from the firm strengthen their market position through features and improvements that make performance and the overall customer experience better with Odoo 18.

Odoo 18: In A New Era For the Company; Simply addressing many of the issues Small and Medium-sized Businesses face with ERP implementation through user-friendly experience and adaptive, modular architecture, this new iteration of the platform allows any business evolving needs. As Odoo innovates and continues improving its offerings, the company stands well to change with the demands of businesses seeking cloud-based, AI-based solutions.

Looking Forward: Growth and Innovation

Odoo has a bright future ahead: it plans to open five new subsidiaries in the next three years, focusing on European, Latin American, and Asia-Pacific countries. Through this process of global opening and expansion, Odoo will reach new markets and further consolidate its leading position as an integrated provider of business software.

Above all, Odoo is investing resources in the research and development departments to ensure that its software continues to improve. The company is specifically targeting the use of cloud technologies and AI in its offerings as a way of boosting more powerful tools for the SMB. According to Fabien Pinckaers, the CEO of Odoo, such a value proposition is not found within the market as Odoo is an affordable flexible solution for the rapidly changing businesses.

Mubadala Investment Company funding will fuel the growth of Odoo during the shift and transformation the company is undergoing in its adaptation to the megatrends cloud and AI. According to Faris Al Mazrui, Head of Growth at Mubadala, “Odoo is just a fantastic partner for businesses looking to tap into these emerging technologies”.

Looking ahead, the future for Odoo is clear in its corporate vision: to continue down its path of growth, expand new markets, and further develop its software offerings to meet the changing needs of SMBs around the world. Supporting that is its strong financial backing with a commitment to innovation. Satisfied as it may be in the present, Odoo is positioned to remain at the forefront of the SMB software market for many years.

A Bright Future for Odoo

Secondary capital of €500 million confirms that Odoo is a global leader in business software for small and medium-sized businesses. With a continuously increasing user base, expansion across the globe, and constant innovation, Odoo will transform the way businesses operate by giving customers stronger, more accessible, and more affordable solutions around the world.