Kyriba nets $160 million investment, pushing software firm’s valuation above $1 billion
SAN DIEGO, CA – San Diego fintech software firm Kyriba expects to soon complete a $160 million funding round as part of a capital restructuring that values the company at $1.2 billion.
With the new funding round, Kyriba becomes one of the few privately held San Diego software firms with a valuation of $1 billion or more. It joins Internet software firm Seismic and autonomous driving software outfit TuSimple.
The pending investment comes from European private equity outfit Bridgepoint, which will have majority ownership stake in Kyriba.
The company will use the funds to pay off some of its earlier investors, as well as accelerate development of its financial software platform through acquisitions and organic growth.
Kyriba makes cloud-based financial management software that helps large companies manage their cash in far-flung global bank accounts. It expects to move into a new, 50,000-square-foot corporate office in this fall that will more than double its current footprint in San Diego.
The privately held software-as-a-service firm hit $110 million in revenue last year, up 40 percent from 2017.
“Bridgepoint will help us fulfill our mission of enabling chief financial officers and treasury executives to be more agile and efficient in managing their global cash and liquidity,” said Jean- Luc Robert, chief executive of Kyriba.
The company employs about 120 workers in San Diego and expects to hire an additional 80 workers locally over the next 12 months. Kyriba employs about 700 globally.
Founded in 2003, Kyriba has raised about $100 million in venture capital over the years. Some of its early investors, including Upfront Ventures, are cashing out with this new funding, said Kevin Bryla, executive vice president at Kyriba.
“We are changing the capital structure, no question,” said Bryla. “There will be a few investors who are leaving us who have been with us for years and done an amazing amount of work to help us. They saw an opportunity for a good exit, and they set us up for a good future with a new partner.”
Bridgepoint has more than $20 billion of assets under management. While primarily a European fund, it does have offices in New York and San Francisco. It invests in technology companies in the U.S.
It hasn’t been determined yet how many representatives of Bridgepoint will join Kyriba’s board of directors. The company’s current management team will remain in place.
Kyriba’s customers include Qualcomm, Palo Alto Networks, Hilton Grand Vacations, Spotify, Symantec and Peloton, among others. It added nearly 230 new clients last year.
In January, Kyriba acquired a Phoenix-area firm FiREapps, which makes analytics and other tools to manage foreign exchange fluctuations.
Reaching $100 million in revenue is considered a trigger for software firms to launch an initial public stock offering. But the recapitalization likely signals that Kyriba has no immediate plans to go public.
“With a market-leading offering in the French and U.S. markets, Kyriba is now well positioned to expand globally, and we anticipate that further investment in research and development in particular will support its development,” said Andrew Sweet, a New York-based Bridgepoint partner, in a statement.
Source: San Diego Union Tribune
Kyriba is a leading global provider of cloud treasury and financial management solutions. Kyriba empowers financial leaders and their teams with award-winning solutions for cash and risk management, payments and supply chain finance. Kyriba delivers a highly secure, 100% SaaS platform, superior bank connectivity and a seamlessly integrated solution set for tackling today’s most complex financial challenges. More than 1,600 companies, including many of the world’s largest organizations, rely on Kyriba to streamline key processes, protect against loss from fraud and cybercrime, and accelerate growth opportunities through improved decision support. Kyriba is headquartered in San Diego, with offices in New York, Paris, London, Tokyo, Dubai and other major locations.
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