The Rise of Vertical Marketplaces and Ageras Group's Growth

Vertical marketplaces are increasingly vital to the digital economy, functioning as central hubs connecting providers of specific goods or services with interested buyers. This model has gained even greater prominence in the wake of recent global events, creating a heightened demand for such platforms.

Ageras Group Secures $73 Million in Funding

Reflecting this trend, Ageras Group, a Danish startup, has announced a new round of funding to fuel its expansion. The company operates a unique, dual-purpose platform offering both accountancy software and a marketplace for small and medium-sized businesses (SMBs) seeking accounting professionals.

The Copenhagen-based company successfully closed a $73 million investment from Lugard Road Capital.

Valuation and Previous Funding

While Ageras has not publicly disclosed its valuation, a report from a Danish publication, Borsen, estimates it at 1.5 billion Danish krone, which translates to approximately $244 million based on current exchange rates. Confirmation from an Ageras representative is pending.

Founded in 2012, Ageras was initially bootstrapped for five years. PitchBook data indicates prior funding of around $220,000 before this latest round. Previous investors include Investcorp, who acquired a majority stake in 2017, and Rabo Bank.

Expansion Plans and Market Position

This new investment follows a period of substantial growth for Ageras. The company has already amassed over 340,000 users across Denmark, the United States, Sweden, Norway, Holland, and Germany.

The funding will be strategically allocated to expand into new “growth markets,” encompassing both new countries and customer segments, as well as the addition of new features to its software suite. This expansion will be achieved through both organic growth initiatives and strategic acquisitions.

CEO Statement

“Ageras has established a market leading and best-in-class product offering that is optimally positioned for international expansion and the rising demand for automated business tools,” stated Rico Andersen, CEO and co-founder of Ageras. “This latest financing round will support our ongoing commitment to scaling the Ageras brand and bringing our software offering to new customers across the globe. We look forward to continuing the Ageras story in the years to come.”

Ageras' Marketplace and Software Offering

Ageras employs a standard labor marketplace model. SMBs seeking accounting services – including accounting, bookkeeping, or auditing – submit their needs and receive three potential leads to contact.

This model builds upon the founders’ prior success with “Fa det Gjort” (meaning “Get it done!”), an online marketplace for home service professionals.

Complementing the marketplace, Ageras has broadened its offerings to include accounting software. This began with its in-house Meneto suite and was further enhanced through the acquisitions of Billy in Denmark and Tellow in The Netherlands.

The Enduring Appeal of the Marketplace Model

This investment highlights the continued success of the marketplace model in the online business landscape, popularized by e-commerce giants like Amazon and Alibaba and now extending to a diverse range of services.

The labor marketplace model has proven consistently popular, as demonstrated by companies like Uber, Deliveroo, and numerous platforms connecting tradespeople with customers.

Expanding into Knowledge Worker Services

The extension of this model to encompass knowledge worker jobs is also gaining traction, with platforms like Upwork, Bark, and Paro facilitating connections between accountants and potential clients.

The Impact of the Pandemic and Future Trends

The current growth in this space is particularly noteworthy. The pandemic has significantly reduced foot traffic in business districts, altering the nature of traditional “offices.” This shift has created opportunities for a wider range of service providers while simultaneously increasing the challenge of discoverability.

Marketplaces offer a solution to this challenge, which may explain LinkedIn’s reported interest in developing its own marketplace for skilled professionals.

Competitive Landscape

Ageras faces competition not only from other marketplaces but also from established and emerging players in the online accounting software sector. These include industry leaders like Intuit, as well as newer companies such as Pennylane, TaxScouts, Zeitgold, and Stripe-backed Pilot.

Investor Background

Lugard Road Capital, affiliated with U.S. hedge fund Luxor Capital Group, has previously invested in platforms like Glovo and inRiver. Investcorp maintains a substantial stake in Ageras as part of its broader technology investment strategy, which includes acquisitions and sales like security firm Avira and a recent investment in India’s logistics startup Xpressbees.

“The combination of Ageras’ mission critical software, backed by a reputation for dependability, insights into the professional service market, an outstanding management team, paired with its cutting-edge research & development has ensured it has continued to grow its market position and deliver an accountancy ecosystem based on high quality recurring revenue,” said Gilbert Kamieniecky, MD and head of Investcorp’s technology vertical. “The additional financing secured by Ageras will help to drive international expansion and support the continued innovation of its customer offering.”