AI Startup Zip Secures $2.2B Valuation in Its Series D Funding Round

AI business software company Zip announced on Monday that it has been valued at $2.2 billion following a funding round led by technology investment firm BOND, reflecting a substantial increase from its $1.5 billion valuation in 2023. The company raised $190 million in this Series D round, which it plans to allocate toward research and development, expanding its suite of artificial intelligence (AI) solutions, and supporting its global expansion, with a particular focus on Europe, the Middle East, and Africa.

This funding round signals the growing interest from investors in companies enhancing their AI capabilities, even as venture capital dealmaking has slowed. Zip's funding round saw participation from new investors DST Global, Adams Street, and Alkeon, alongside existing backers Y Combinator and CRV.

Founded in 2020 by Rujul Zaparde and Lu Cheng, Zip provides an AI-powered platform designed to streamline procurement processes, helping businesses acquire goods and services while mitigating risks. Zip’s platform is already in use by major enterprises like Arm, Canva, Coinbase, Lyft, and Reddit.

Zip's CEO, Rujul Zaparde, emphasized that companies waste billions of dollars and hours on cumbersome approval processes, security risks, and manual data entry. "Zip has already proven that we can fix that, saving our customers billions of dollars and thousands of hours of time — and our new round of funding will allow us to continue to revolutionize business spending," Zaparde stated.