Vendasta yesterday announced it has raised $40 million in growth funding, $25M of which was led by the Canadian Business Growth Fund (CBGF) in addition to an earlier round in May of $15M led by Comporium, Inc and Saskworks Venture Fund Inc. with participation from existing investors Vanedge Capital LP and BDC Capital IT Venture Fund.
Vendasta say these investments will enable the expansion of its Saskatoon-based team from 285 people to 650 in the next three years.
According to Vendasta, the funds will be used to enhance the Vendasta Platform. The company will accelerate its expansion into new customer channels such as banks, telcos, insurance companies and other enterprise organizations.
“SMBs worldwide are purchasing and relying on cloud-based software more than ever before. It’s projected that SMB spend on software as a service (SaaS) solutions will represent a $76 billion market opportunity in the US alone by 2020. They’re turning to trusted local experts to provide that software, and we are uniquely positioned to empower those experts with our cloud commerce platform,” said Vendasta CEO Brendan King.