Xactly, a San Jose startup that makes software for sales performance management, announced today that it has raised $12 million in a round led by Bridgescale Partners. The company plans to use the funding to focus both on customer acquisition and on its existing products.
Motorola, Time Warner Cable, Xerox and salesforce.com all use Xactly’s software solutions. salesforce.com is also an investor in the company, according to today’s announcement, and in June, Xactly launched an app on salesforce.com’s ChatterExchange Platform that allows employees to communicate in real-time.
Xactly Corporation, the leader in on-demand sales performance management (SPM), today announced it has secured $12 million in financing to further extend its customer and technology leadership in the SPM market. The round was led by Bridgescale Partners, with participation from existing investors Alloy Ventures, Bay Partners, Cheyenne Partners, Glynn Capital Management, Outlook Ventures, and Rembrandt Ventures. The round also included a strategic new investment from salesforce.com.
“Xactly continues to deliver stellar business results, while maintaining our unwavering commitment to both product and customer excellence,” said Christopher Cabrera, president and CEO, Xactly Corporation. “This continued support from our existing investors and the addition of new investment partners will enable us to extend our market leadership, fuel new customer adoption, and continue investment in our award-winning products.” In the first half of 2010, Xactly increased worldwide recognized revenues by more than 50 percent over the first half of 2009. In 2009, Xactly also increased worldwide recognized revenues by more than 50 percent over 2008 and nearly tripled its number of customers and subscribers.
“The corporate enterprise is rapidly adopting on-demand or SaaS based sales performance management solutions to get better operational efficiency from its sales teams,” said Rob Chaplinsky, managing director of Bridgescale Partners. “In five years, Xactly has not only paved the way for this market evolution, but the company is now the clear market leader in this high growth category of SPM software.”
“Xactly has grown rapidly by making customers successful with sales performance and incentive compensation management delivered via the cloud,” said Kendall Collins, chief marketing officer, salesforce.com. “We expect that Xactly will continue to enhance their leadership position by delivering new innovation, such as real-time collaboration capabilities, in their cloud offerings to further ensure customer success.”
The additional funding will enable Xactly to further capitalize on new market opportunities and continue its strong track-record of company growth and global customer excellence. The capital will also be used to continue investments in the company’s flagship Xactly Incent offering, the industry’s first 100-percent SaaS-based incentive compensation solution, and extended SPM product suite, including Xactly Analytics and Xactly Express, Xactly’s SPM offering to small to medium businesses that are ready to move from excel spreadsheets to a cost-effective SaaS solution.
Companies Rapidly Adopting SaaS-Based Sales Performance Management
The SPM market continues to expand as companies look to remove error-prone spreadsheets from the sales compensation management process and begin to use incentive compensation as a strategic, behavior altering weapon. In its recent “MarketScope for Sales Incentive Compensation Management Software”(1) report, Gartner estimated that “from 2011 to 2014, investments in SPM solutions will increase by 20 percent year over year as companies rebuild sales capacity” and estimates “by 2011, more than 60 percent of new sales ICM software projects will source from a hosted or SaaS option, based on an annual subscription.” Xactly received a “Positive” rating in the report.
Xactly helps companies of all sizes reduce the bottom line costs associated with incentive compensation management, while increasing top-line revenue by helping drive the desired sales behavior. More than 300 companies are currently benefitting from Xactly SPM solutions including American Express, Blackboard, Cablevision, ClairMail, DHL, Dun & Bradstreet, GlobalEnglish, Halliburton, InsideView, Motorola, Perkin Elmer, salesforce.com, Time Warner Cable and Xerox.