Anaplan Valued at $1.1 Billion After $90 Million Pre-IPO Round

  • San Francisco startup raises funding from private investors
  • The software developer is weighing a market listing, CEO says

Anaplan Inc. raised $90 million from private investors led by Premji Invest, giving the Inc.-backed software developer a valuation of $1.1 billion as it ponders a market listing.

The San Francisco-based startup, which develops web-based business-planning software to rival Oracle Corp. and SAP SE’s, said it raised money from Baillie Gifford, Founders Circle Capital and Harmony Partners, as well as existing investors including Salesforce. Anaplan will use the funds to woo new customers globally, as well as develop its product and infrastructure, Chief Executive Officer Frederic Laluyaux said in an interview.

Frederic Laluyaux

Photographer: David Paul Morris/Bloomberg

Laluyaux, a former SAP executive, said he’s considering an initial public offering though no deadline’s been set on making that decision. Salesforce co-founder and Chief Marc Benioff about a year ago called on unicorns -- startups worth more than $1 billion -- to go public for a valuation-check from the markets.

“This funding round gives us the flexibility to decide when we’ll IPO, and it brings in investors who’ve participated in IPOs,” Laluyaux said. Anaplan is valued $1.1 billion after the round and $1 billion before, he said. The company has raised $240 million to date, the previous $100 million round led by Draper Fisher Jurvetson mid-2014.

Faster returns

Like Salesforce, Anaplan is targeting corporations with the promise of faster return on their investments in computer systems, selling software it says is simpler to use and less clunky. Companies from Facebook Inc. to Google Inc. are also going after the enterprise market with offers for work.

"We’ve just scratched the surface of getting rid of old and barbaric software in the workplace," Laluyaux said. "From France to Japan we’re meeting customers who are feeling the same pain -- the market dynamics are the same everywhere."

Laluyaux describes Anaplan’s product as a “calculation engine” with an interface that’s tailored to clients from banks to the likes of Kimberly-Clark Corp. and HP Inc. Started by Michael Gould in the U.K. in 2007, the startup charges customers annually based on usage.

SAP this week reported fourth-quarter sales and profit that topped analysts’ estimates as businesses signed deals for its latest flagship software, revamped to accommodate customers’ shift to cloud computing.

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