Comments
SirionLabs has secured $4.7 million in Series A from Sequoia Capital. The fund will be used to accelerate R&D and also help in market and product development.
With this investment, Shailendra Singh, Managing Director of Sequoia Capital, has joined the company's board of directors.
Hard value leakage
The Delhi-based firm was founded in 2012 by Ajay Agrawal and Claude Marais to tackle the problem of strategic supplier engagements such as hard value leakage on the buy side ranging from 8-12 per cent of the annual contract value, which arises from inadequate governance and poor vendor management on an ongoing basis.
“SirionLabs' mission is to deploy this approach to radically simplify the procurement of strategic services and bring its unfulfilled promise of increased savings and efficiency to organisations of all sizes." company CEO and co-founder Ajay Agrawal said.
Delivery side problems
Leading IT suppliers, including Indian players who deliver about $200 billion of services annually to global customers, face similar problems on the delivery side with the gap between "what was supposed to happen'' and "what they actually deliver'' driving a revenue leakage ranging from 3-7 per cent as a combination of service level penalties, under-invoicing and early terminations.
The company’s flagship product – Sirion - offers functionality for managing the entire strategic supplier management lifecycle – contract, performance, finance, risk, relationship and consumption management and thereby minimize spend and revenue leakage.
Sirion was released in September 2013 and went live with a Fortune 500 financial services company as the first client.
Strategic supplier spend, in excess of $1 trillion annually, experiences an estimated hard value leakage of $80-120 billion on the buy side.
Traditional procurement and service delivery products cannot be improved to address this problem because they are simply not geared to bring all the key disciplines of post-signature supplier management into a single platform. Further, they lack the ability to bring the enterprise focus down to the obligation level where the real value leakage takes place.
"Not surprisingly, Sirion's early market validation has been terrific. We believe SirionLabs can become a very large SaaS company in the vendor governance and vendor management space in the post-procurement phase of sourcing,'' Shailendra Singh said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.