Earlier in the week, we looked at some good CRM buying principles outlined by SugarCRM, which, as one of the fastest growing companies in the space, has a lot to say on this. Today, it has announced that it will be getting a lot bigger in the near future courtesy of a US$ 33 million cash boost through its latest financing round.
The investment round was led by New Enterprise Associates (NEA), but also includes participation form from new investors Silicon Valley Bank and Gold Hill Capital, giving the company’s health an official stamp of approval.
According to SugarCRM, it will use the money to continue its moves into the enterprise market and to pursue strategic business opportunities.
It hasn’t stated specifically what those strategic opportunities might be, but its success over the past year may encourage it to start looking at opportunities that were once the exclusive stomping grounds of Microsoft and its Dynamics offerings, and of course the other CRM gorilla, Salesforce.
According to SugarCRM, such a move, while it may be ambitious, is also justified based on its revenues over the past year that saw it achieving 67% growth in billing as well as adding more than 2700 new companies to its portfolio of clients.
In 2011 we saw demand for CRM solutions grow exponentially with an increased number of enterprise companies looking for an open and flexible CRM platform that can effectively scale with their growing businesses… Our growth was up 67% last year, and we are off to a great start in 2012,” said Larry Augustin, CEO of SugarCRM.
But SugarCRM’s growth is not just hot air and bluster. For the last quarter we have figures for -- Q3 in November -- there was bluster, but there were also some hard, cold, cash facts.
It showed strong year-over-year growth (69%) in all regions, and said it was casting an eye toward Eastern Europe to help keep up the momentum.
The company reported a 13% upward trajectory in billings, over Q2 numbers that included a whopping 84% and 83% year-over-year growth in North America and Asia Pacific respectively.
With more than 350 channel partners and 30,000-plus open source global developers, the company is now looking to expand its reach in the EMEA region (Europe, Middle East and Africa) and announced it will pay particular attention to Eastern Europe where billings growth was, by comparison, a more modest 45%.
So while it hasn’t said specifically what it is going to do with that US$ 33 million, there’s a good chance it’s going to be throwing it into the expansion mix somewhere. Let’s see what happens.