Odoo Valuation Hits €5 Billion After Further Investment Through Investors Such As Big Players, Capital G & Sequoia Capital
| Ecosystem News, Partnership |
Written by, William McMahon - December, 29th, 2024
Morning Purple Juicers, and in typical Odoo fashion, I arrive back in the UK, and some huge breaking news drops. While I am still jet-lagged, and still reflecting back on my brilliant Odoo AUS trip, it's great to be riding out the year with even more Odoo Ecosystem news.
So thanks, Odoo for keeping me up writing at midnight, but I can't really complain and be too mad, given the scope of the update.
Odoo (Odoo S.A.) yesterday announced on all public channels, including CEO, Fabien Pinckaers, that the then Belgian Unicorn, leading the charge in battling some huge platforms like SAP, Oracle and others, has officially completed a transaction worth over $500 Million. The company further continues to grow after 20 years deciding that open-source would be the best way to tackle the bigger boys in the ERP world.
Now over two decades later, according to TechCrunch, that €500 Million sits at around $527 Million in exchange rates. A big move for Odoo, but what does it really mean for the wider ecosystem and users?
Yes, it's a big deal for the Belgian giant that promotes further growth.
The transaction was lead by organisations such as CapitalG, Sequoia Capital and other investor companies such as BlackRock, Mubadala, HarbourVest Partners, AVP and Alkeon Capital also participated in the transaction which brokered the deal.
With their basis on investing in remarkable leaders to accelerate even further growth on a large scale, using Google Advisors, it seems like a match made in heaven for Odoo. It is going to be extremely interesting to see how this grows. Source: CapitalG
CapitalG Is Alphabet's Independent Growth Fund
Capital G invests in their capital and expertise to help remarkable growing companies and entrepreneurs, leading transformational organisations, to further accelerate the growth of business.
Read More:Likewise, Sequoia Capital brings extreme value to the companies to has helped grow. including the likes of Nvidia, Reddit, YouTube, DropBox, Apple, PayPal, SpaceX and DoorDash, WhatsApp and Instagram. I could really go on, so you could say they have a little bit of experience when it comes to this area.
In addition to this, the secondary capital transaction reflects some super strong messages to the wider companies vision and additional future impact across the market. As part of the much larger transaction, Odoo existing investors, including Summit Partners, Noshaq, and Wallonie Entreprendre, will be selling a portion of their shares, with Summit still the key biggest stake as an institutional shareholder.
It's also important to mention that giant J.P Morgan SE acted as the sole exclusive placement agent regarding the transaction.
With this news landing, it means that., of course, that now...
Odoo's valuation is now calculated and sits above €5 Billion.
Not too bad for a system that is ultimately often seen as that 'chapter alternative' to SAP as an example, and that is all it ever will be. And yes, we have seen all those forum posts on Reddit... you know who you are.
Investment In Odoo For The Long-Term Haul: A Great Move?
The move positions Odoo to grow further more effectively in the long-term. We have seen that in this past year alone with key partnerships like Deloitte in the past few months and KPMG Belgium in the past year, things seem to be moving pretty quickly and with some pretty serious momentum/purpose. Here is what many of the stakeholders and key partners had to say about the recent transaction by Odoo, and then furthermore what this could mean for the future.
Alex Nichols, Partner at CapitalG, had to say this about the transaction:
"Fabien and his team have built a one-of-a-kind business from their ambitious vision for a unified suite of tightly integrated business apps. Odoo's powerful and easy-to-use suite of apps has won over customers across more than 100 countries and virtually every industry, as well as companies any where from one to thousands of employees.
The team's two decades of dedication and long-term thinking has fostered a robust community of partners, contributors, and users that will serve as their foundation for years to come. We are thrilled to partner with Fabien and the rest of Odoo's team."
Alex Nichols and Odoo CEO, Fabien Pinckaers at Odoo HQ In Belgium: Source Odoo S.A.
From Odoo's reports/findings - the company has sustained once again key annual growth of 40% and is proceeding to hit figures of up to €650 Million in billings alone within the next 12 months aiming to reach a further €1 Billion in billings by 2027. With now over 7,500 global channel partners worldwide, it's onwards and upwards for the unicorn.
Andrew Reed, Partner at Sequoia Capital, further had this to say:
"Odoo has built an outstanding software company with a unique culture, product suite and ecosystem. Odoo is a tremendous business already, and it feels like their best days are still ahead. Odoo has the long-term potential to transform the SMB software market and deliver enormous value to customers. We're excited to partner with Fabien and the Odoo team for the long-term."
It's a great time for Odoo, with the migration of Odoo 18 as well in the crosshairs for existing customers at the start of 2025, it's the season of excitement for Odooers globally.
Fabien Pinckaers, Founder and CEO of Odoo, further discussed his view:
"ERPs are traditionally expensive and resource-intensive to further implement, often failing to meet the actual needs and evolving requirements of SMEs. We have developed a very unique value proposition that is playing a pivotal role in today's global market."
It's clear to see that the trust of investors all the way back to 2019, 2021 and 2022, which was led by Summit Partners, has been a catalyst in Odoo's growth, but also with the latest transaction further highlights that this still could be the very start of the investment wave and we are only seeing the beginning, even after 22 years of operating as international eyes are upon us. Let's see what 2025 brings with further talks, I am sure that are already underway, knowing the way Odoo operates - they will not be taking their foot off the gas.
Alessandro Mazzocchetti, CFO at Odoo talks more on the cash flow:
"I'm confident that Odoo will remain profitable in terms of EBITDA and cash flow as we expand our team and global reach. We will keep working hard to serve our customers and partners."
Faris Al Mazrui, Head of Growth at Mubadala, discusses innovation:
"Odoo stands out as a prime example of innovation in a global software offering scalable, adaptable solutions that empower businesses further in the Digital and Cloud Transformation journey. With Mubadala's expertise in software investments and the UAE's role as a fast-growing tech hub, we see Odoo as an exceptional partner for companies adapting to cloud and AI megatrends. We're excited to support their growth worldwide."
The Managing Director at Summit Partners, Antony Clavel, closely linked to Odoo had this to say about the back of their continued support.
"Odoo continues to deliver solutions that we believe are helping to further transform the business software landscape - and they are doing so with impressive traction. We are delighted to welcome new investors and look forward to working together to support Odoo's exciting growth trajectory."
CEO of Wallonie Entreprendre, Olivier Vanderjist talks about valuation:
"The visionary and strategic nature of Odoo's management and rigor with which it has implemented the vision have led an incredible valuation of 5 Billion euros, which has attracted the best investors in the world. This is why WE signed this transaction, while remaining a shareholder in the company to support its future growth as a local player."
Lastly well-known Odooer and COO of Odoo, Sebastien Bruyr, gives his view and account on the future growth of Odoo in the years to come.
"We are expecting to open five new subsidiaries within the further next three years across Europe, Latin America and Asia-Pacific."
I would also like to highlight the brilliant article by CNBC Journalist, Ryan Browne as I thought his take on the news was quite interesting, getting further insight into Odoo CEO Fabien Pinckaers' mind frame regarding the transaction, which you can read in the article.
Ryan talks further about the 'In no rush to IPO' status and that while now Odoo is at the size and scale of a ready-positioned IPO-ready business, Fabien is in no rush to take the company public. If anything it has given Odoo the further scope and flexibility to continue on in the way they have been operating for so long.
What Does The Odoo Valuation Mean For Your Typical Odoo User?
Well for a start, it sends an extremely strong message to both the Community and other competitor platforms that Odoo is here for the long haul and is not going anywhere.
The major transaction highlights that Odoo's position within the ERP market is extremely strong and is only growing on a trajectory upwards! While also mentioning the continued desire to make Odoo awareness and footprint grow even further and provide accessible solutions to companies of all sizes.
In short, Odoo's continued momentum has resulted in the following:
- Grown at 40% year-on-year
- Expected to reach €1 Billion in billings by 2027
- Odoo is now achieving 7,000 new clients a month
- A third round of investment for €500 Million
- Odoo's valuation now rising to €5 Billion
It's pretty safe to say that since the company was founded in 2002, having recently achieved it's 22nd Birthday, the core values have always remained the same regarding supporting businesses. We have clearly seen this with the focus being put previously on open-source software where others had tried and failed. With now over 13+ Million users globally and achieving stats like 7,000+ new customers each month, the growth continues to rise. Scaling operations effectively but, while doing so, not seeing a reduction in growth.
If we look across stats business wider, with some being classed and also tracked back to Q1 2024, it's continued growth for the now Belgian giant.
Currently Active Users Worldwide
13M+
Customers Per Month
7K+
Business Employees
5K+
Active Odoo Partners
7.5K+
Website Visits YoY Increase
68%
Worldwide Odoo Offices
17+
Current Odoo Version
v18
Organisation Valuation
€5B
Given that Odoo has not needed to raise capital during nearly the last decade due to healthy cash flow and consistent growth, we can just assume that, as keen Odooers, everything is running smoothly from a financial side, given that the last Odoo valuation was set at €3.2 Billion, the last funding round in 2014 brought in €10 Million Series B Round.
With cash raised now, we can only assume that this will further be put into R&D (Research & Development) to further push the capabilities of the product along. I would be surprised if AI, does not play a part in that role as well, with the baseline having already been implemented now in Odoo 17 and Odoo 18 accordingly.
From my perspective on it, it can only been seen as positive. As Odooers we can't not see this as positive. It showcases Odoo's willingness to keep growing further as an organisation and wanting to be better to further challenge the bigger players in the ERP world. With likes of Partnerships with Deloitte also being confirmed in the last couple of months, things seem to be ramping up quickly.
Let's see what 2025, beholds of the wider platform and ecosystem. If you want to read more on Odoo's insight into the recent valuation, then you can do, through clicking the link below for further information.
Odoo S.A Announces A €500 Million Transaction, Increasing The Belgian Unicorn's Valuation to €5 Billion
Odoo S.A a leading provider of integrated business software, today has announced a €500 Million transaction led by CapitalG and Sequoia Capital, with participation from BlackRock plus key others which led to the transaction.
Read the article:FAQs
Want to learn more about Odoo? Check out some of our community FAQs.
Odoo is an open-source suite of key business management tools that can be used to help organisations manage their entire operations in one single system.
Odoo CEO, Fabien Pinckaers forged the platform in 2005, originally then known as TinyERP. The re-branding in 2014, to Odoo.
As of December 2025, with a recent valuation being conducted, Odoo is now estimated to be worth over €5 Billion.
The Author
Support and meet the author of this article.
William McMahon
Founder of The Purple Juice Co.
With over 25+ years in the technology sector, having further worked directly at Salesforce & Dell, William is one of the most experienced in the field of CRM and ERP.