It looks like the era of humongous funding rounds isn’t completely over. Workday , a startup that provides online software to help companies manage things like human resources and finances, has raised $75 million in a fifth round of funding.
The Pleasanton, Calif. company was co-founded by Dave Duffield back in 2005, after he sold his previous startup, PeopleSoft, to Oracle for $10.3 billion. (Duffield is still the company’s chief executive, and remains the major stakeholder in the company.) Workday’s tools manage a range of functions at large companies, including human resources, payroll, finances, procurement, resource management, and business intelligence.
By providing those services through as a hosted online service (i.e., software-as-a-service, or SaaS), rather than an on-premise system, the company says it can respond more quickly to its customers’ needs and at a lower cost. There’s also the benefit of consolidating all of these features into a single system. Communications Director Andrew McCarthy tells me that for some companies, Workday is replacing as many as 80 systems worldwide. And it’s more user-friendly, he says, behaving “from an end user standpoint more like an Amazon or a Google than a big [enterprise resource planning system].”
Workday now has 80 customers, including Fortune 500 businesses. Signing up companies of that size is particularly impressive because we’re talking about core business functions, and enterprise-size corporations in particular have traditionally been hesitant about SaaS, due to concerns about reliability, lock-in, and security. Competitors include Netsuite.
The company has raised a total of more than $150 million in funding, with a workforce of 340. The round was led by New Enterprise Associates (which contributed more than $45 million), with participation from previous backers Greylock Partners and Duffield himself. In an interview with PEHub, co-founder and President Aneel Bhusri, who is also a partner at Greylock, predicts Workday should break even in a year and a half and says the company is aiming for an IPO.
VentureBeatVentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative technology and transact. Our site delivers essential information on data technologies and strategies to guide you as you lead your organizations. We invite you to become a member of our community, to access:
- up-to-date information on the subjects of interest to you
- our newsletters
- gated thought-leader content and discounted access to our prized events, such as Transform 2021: Learn More
- networking features, and more