About a year ago, I posted a piece focused on the Gartner Procure to Pay Magic Quadrant with added valuation information (see here). Since that time:

  • stock prices have gyrated
  • Coupa and Tradeshift raised rounds, and
  • several acquisitions were made by public companies in the space (Verian, Iasta, b-Pack, jcatalog).

In short, it seems like time to update the chart.  So here is the Gartner Procure to Pay Magic Quadrant with updated commentary on valuations.  (I used a multiple of sales as the most expedient valuation metric):

Gartner Procure to Pay Magic Quadrant
Gartner Magic Procure to Pay Quadrant with Valuations

The chart suggests:

  • The procure to pay space never ceases to interest investors.
  • There are widespread disparities in valuation based on growth (or the lack thereof).  No big surprise there!
  •  Ivalua and BirchStreet must be getting a lot of inquiries and attention.
  • Determine (DTRM) is not getting a lot of love from the market.  It has now assembled a complete procure to pay solution and yet its market cap is about 0.5x sales. Since DTRM is losing money, even on a non-GAAP basis, investors are implicitly expressing concern about Determine as an ongoing concern.

Note:  this chart does not include Tradeshift, who was not a complete procure to pay player when it was issued.  Now it is.  According to CrunchBase, Tradeshift has raised $174 million.  Tradeshift has not disclosed their revenue, but I’d take a wild guess at $20 million.

Whether you a public or private investor, there are still several bets you can place in this sector–though you can see the big bets have been placed on Ariba and Coupa.

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