Cloud ERP startup Acumatica has raised $10 million in venture funding to fund expansion of a robust partner distribution and services network for its suite of financial management, inventory and back-office applications for fast-growing small and midsize businesses (SMBs).
The infusion comes from Runa Capital and Almaz Capital, and it follows two previous capital rounds for undisclosed amounts: a 2011 investment by Visma, which is a portfolio company of Kohlberg Kravis Roberts & Co., and earlier funding in 2009 from Almaz (which itself is backed by Cisco Ventures).
Acumatica is growing its sales by more than 300 percent annually for an integrated suite of ERP applications specifically focused on small enterprises, including accounting, distribution, customer relationship management (CRM), project management and inventory management.
Like many of the most successful accounting software developers of the desktop software era, it is building a network of serious, highly qualified VARs and consulting partners -- there are more than 250 currently -- that can help customize and set up the applications. Some SMBs are up and running in as little as two weeks.
AME Corp., a 36-year-old manufacturer of custom and rubber components based in New Jersey that also has a presence in Shanghai, migrated to Acumatica's inventory, sales, purchasing, shipping and inventory applications in order to streamline its processes and also to provide all of its locations with access to up-to-date information.
Adding new employees is simpler and consultations with the company's financial advisors have become far more strategic, said Ehren Dimitry, president and owner of the company, which employs less than 20 people. "We spend less time on paperwork and more on value-added auditing," he said.
AME's deployment includes an integration between the Acumatica software and the Box cloud-based archiving service, which allows employees to marry background information with purchase orders or customer records more easily. The two services were previously accessed and managed separately, so this has meant a huge boost in productivity -- about 400 percent overall (not just related to the Box integration). "We wanted our users to spend most of their time in Acumatica, while still getting the benefits of Box in a seamless, integrated experience," Dmitry said.
Future plans include deployent of the smart inventory forecasting feature, which uses historical data to help SMBs keep on top of production needs.
A word of caution, this is not an insignificant investment: the base suite starts at almost $2,000 per month (for unlimited users). But it has helped AME scale far more quickly than its previous client-server solution for back-office management.
“Acumatica is the backbone of our cloud environment," Dmitry said. "It has already changed the way we do things, improving efficiency, and there are endless opportunities for even more process improvements and productivity gains. As we do so, it will clearly strengthen our company in the long run.”
Updated Dec. 5, 2013: Received a note from the Acumatica team to clarify pricing. Although the $2,000 price appears on its Web site, a spokeswoman notes that the entry price for Acumatica Financials is $983 per month for SaaS. The point is that the pricing scenario will depend on your company's needs.