Odoo S.A. announced the completion of a 500 million euro transaction.

The leader in enterprise management software, Odoo S.A., announced today the completion of a €500 million investment. This round was led by CapitalG and Sequoia Capital, with participation from Blackstone Group, Mubadala Investment Company, HarbourVest Partners, AXA Venture Partners, and Alkeon Capital. This secondary market transaction demonstrates the investors' strong confidence in the company's future prospects. In this round, existing investors Summit Partners, Noshaq, and Wallonie Investissement sold part of their stakes, with Summit Partners remaining the largest institutional shareholder.

Odoo S.A. announces a €500 million transaction, increasing the Belgian Unicorn’s valuation to €5 billion

This large-scale transaction highlights Odoo's leadership and strong profitability in the SME software sector, further confirming its role in leading the global transformation of business software through innovation and user-friendly solutions.

Since its founding in April 2002, Odoo S.A. has been committed to developing and continuously optimizing a full suite of management software applications for SMEs. Currently, Odoo has over 13 million users, with more than 7,000 new customers added monthly, establishing a strong brand influence in the industry. With its intuitive and friendly design philosophy, Odoo helps businesses focus on core tasks such as improving customer satisfaction, driving innovation, optimizing business processes, and efficiently scaling operations.

Odoo S.A. maintains a 40% annual growth rate and expects revenue to exceed €650 million in the next 12 months, reaching €1 billion by 2027. The company has established 15 subsidiaries worldwide and built a global network of 7,500 partners. After this round of investment, its valuation has reached €5 billion.

"Fabien and the team have successfully built a unique company with their mission to develop an integrated business application suite," said Alex Nichols, Partner at CapitalG, Alphabet's independent growth fund (Google's parent company). "Odoo's application suite has gained recognition across industries in over 100 countries, from individual entrepreneurs to large enterprises, all finding suitable solutions on the Odoo platform. The team's 20 years of dedication and long-term vision have cultivated a strong community of partners, developers, and users, which will serve as a solid foundation for the company's future growth. We are honored to collaborate with Fabien and Odoo's leadership team."

"With its unique corporate culture, product system, and ecosystem, Odoo has grown into an outstanding software company," said Andrew Reed, Partner at Sequoia Capital. "Odoo has achieved remarkable success, but I believe this is just the beginning. Odoo has the potential to reshape the SME software market landscape and deliver greater value to customers. We look forward to establishing a long-term strategic partnership with Fabien and the Odoo team."

Odoo 18, released on October 2, is the latest upgrade of the company's software, solidifying its market position and significantly enhancing performance and user experience.

"Traditional ERP systems are not only costly and resource-intensive to implement but often fail to meet the actual needs and evolving business requirements of SMEs. Our unique solution fills this market gap," said Fabien Pinckaers, Founder and CEO of Odoo S.A.

This €500 million investment reflects the high recognition and trust of the investment community in Odoo. Following Summit Partners' investments in 2019, 2021, and 2022, this round further confirms Odoo's appeal to investors.

Faris Al Mazrui, Chief Growth Officer at Mubadala, said: "Odoo is a global exemplar of software innovation, offering scalable and adaptable solutions that help businesses achieve digital and cloud transformation. Leveraging Mubadala's expertise in software investments and the UAE's role as a rapidly growing tech hub, we see Odoo as an exceptional partner for enterprises adapting to the megatrends of cloud computing and AI. We are delighted to support Odoo's global expansion."

"Odoo's continuous innovations are reshaping the business software landscape and achieving significant market impact," shared Antony Clavel, Managing Director at Summit Partners, who has served on Odoo's board since Summit Partners' first investment in 2019. "We are thrilled to welcome new investment partners and look forward to working together to support Odoo in writing new chapters of growth." Post-transaction, Summit Partners will remain Odoo's largest institutional shareholder.

Odoo continues to forge ahead. Looking toward 2025, this unicorn will seize more development opportunities, expand into new markets, strengthen R&D capabilities, and accelerate product innovation.

"Over the next three years, we will establish five new subsidiaries in Europe, Latin America, and the Asia-Pacific region," said Sebastien Bruyr, Chief Commercial Officer of Odoo S.A. Alessandro Mazzocchetti, CFO of Odoo, added: "I believe that while expanding our team and global operations, the company will remain profitable in terms of EBITDA and cash flow. We will continue to work hard to create greater value for our customers and partners!"

Olivier Vanderijst, CEO of Wallonie Investissement (WE), said: "Odoo's management team's strategic vision and exceptional execution have propelled the company's valuation to $5 billion, attracting top global investment institutions. This is also why WE participated in this round. As a local investor, we will continue to hold shares and support the company's future growth."