xentral Raises $75M Series B

ERP Systems Expand Accessibility to Small and Medium-Sized Businesses

Historically, Enterprise Resource Planning (ERP) systems were largely adopted by larger corporations. However, the increasing volume of data generated by small to medium-sized businesses (SMEs/SMBs) has now made ERP solutions viable for these organizations as well.

This trend is particularly noticeable among businesses operating exclusively online.

xentral Secures $75 Million in Series B Funding

Earlier this year, we reported on xentral’s $20 million Series A funding round. Xentral is a German startup specializing in ERP software designed for small online businesses.

The company has now successfully raised $75 million in a Series B funding round led by Tiger Global and Meritech.

Existing investors, including Sequoia Capital, Visionaries Club, and Freigeist, also participated in this funding round.

Strategic Allocation of Funds and Market Expansion

The newly acquired capital will be strategically allocated to enhance the product’s capabilities, expand the company’s workforce, and bolster its operations in the U.K.

This expansion is geared towards capturing a larger share of the global ERP market, which is projected to reach $32 billion by 2023.

xentral’s Integrated Approach to Business Management

According to Benedikt Sauter, founder and CEO of xentral, the platform integrates with popular e-commerce platforms such as Shopify, eBay, Amazon, Magento, and WooCommerce.

It also connects with CRM systems like Pipedrive, consolidating software functionalities into a single location.

The system is designed to automate processes, allowing businesses to concentrate on core operations.

Sauter stated that xentral aims to enable businesses to implement and configure the ERP system over a weekend, making it immediately available to their teams on Monday.

Comprehensive Suite of Services

Xentral provides a comprehensive suite of services, including order management, warehouse management, packaging, fulfillment, accounting, and sales management.

Currently, the majority of xentral’s 1,000+ customers are based in Germany.

Notable customers include direct-to-consumer brands like YFood, KoRo, the Nu Company, and Flyeralarm.

Investor Confidence and Future Outlook

John Curtius, partner at Tiger Global, highlighted the company’s delighted customer base and the evolution of its product into a critical platform for e-commerce merchants globally.

He expressed excitement about partnering with Benedikt and Claudia Sauter to scale the business and serve customers worldwide.

Sequoia Capital’s European Investment

Xentral represents Sequoia’s inaugural investment in Europe since officially establishing a presence in the region this year.

While Sequoia had previously invested in European startups like Graphcore and Klarna, those deals were finalized from the U.S.

Luciana Lixandru, Sequoia’s new European partner, will join Xentral’s board alongside Robert Lacher of Visionaries.

Meritech’s Vision for SME Automation

Alex Clayton, general partner at Meritech, drew parallels to their 2008 investment in NetSuite, envisioning a similar transformation for SMEs.

Meritech believes xentral will automate processes for hundreds of thousands of small businesses, significantly improving multi-channel operations and data management within the expanding e-commerce landscape.

Origins of xentral

The initial prototype of xentral was developed by Benedikt and Claudia Sauter (also husband and wife) for their initial venture in computer hardware sales.