PALO ALTO, Calif.--(BUSINESS WIRE)--supplier.io, the leading SaaS provider of supplier diversity management, announced today that it has received a substantial strategic investment from Norwest, a leading Growth Equity investment firm. The investment will accelerate supplier.io’s ability to deliver best-in-class supplier diversity solutions to leading corporations and organizations as well as scale in global markets. Over 20% of the Fortune 50 already use supplier.io to ensure diverse and equitable spend across their base of vendors and suppliers. Norwest will become the majority investor in supplier.io.
In a study announced by The Hackett Group last month, nearly 30% of respondents said they are setting formal diversity spend goals for the first time in reaction to the increased focus on social reform and racial injustice in 2020. The study surveyed more than 100 large global and U.S. companies in nearly every industry and found that companies currently dedicate 7.2% of their spending to diverse-owned businesses. The study projects this spending to grow significantly in the coming years - by 2025, these companies expect a more than 50% increase in their diversity spend goals, with an average target of 13% of their spend dedicated to companies across a wide range of under-represented groups.
As companies adopt and expand their supplier diversity programs, supplier.io continues to provide innovations that make it easier to find and engage diverse businesses. In the past year, supplier.io expanded its database to provide over 2 million diverse businesses globally, created a “Google-for-diverse-businesses” via its new PowerSearch capabilities, and introduced a revolutionary tool to help companies track diverse supplier inclusion in their sourcing activities.
“We believe the time is now to make a lasting social and economic impact in diverse communities. In Norwest, we’ve found a partner who shares our mission to help make a difference through supplier diversity. Norwest’s strategic, operational and ESG expertise will allow us to significantly accelerate our goal to help companies increase their use of diverse suppliers everywhere,” said Neeraj Shah, President, and CEO of supplier.io.
“Supplier diversity is an important step for organizations to enhance inclusion and corporate social responsibility while at the same time elevating overall supplier and vendor performance,” said Ran Ding, Partner at Norwest. “We are excited to partner with Neeraj and the supplier.io team to further cement its position as the defacto SaaS solution for supplier diversity management and analytics.”
“Supplier.io fits very well into our long-standing strategy of investing in leading SaaS businesses that create both substantial social impact and strong financial returns,” said Rob Arditi, co-head of Growth Equity at Norwest. “We will leverage Norwest’s unique resources to help supplier.io achieve its mission of advancing supplier diversity program performance.”
As part of the investment, Ran Ding and Rob Arditi will join supplier.io’s board of directors.
Since 2011, supplier.io has provided innovative solutions that help supplier diversity managers implement highly effective strategies to manage and grow their programs. The platform was further accelerated via its acquisition of CVM Solutions in 2019. The company is profitable and has sustained 40%+ annual growth rates.
Vista Point Advisors, a San Francisco-based boutique investment bank, acted as the exclusive financial advisor to supplier.io.
supplier.io is the leading SaaS provider of solutions that enable companies to manage, optimize, and scale their supplier diversity programs. Working as a trusted advisor to the Supplier Diversity community, supplier.io’s mission is to support every program by providing innovative and superior end-to-end Supplier Diversity solutions. Equipped with unparalleled data intelligence, superior technology and expert guidance, supplier.io’s customers can establish and advance their supplier diversity initiatives effectively and strategically. For more information, visit www.supplier.io.
About Norwest Venture Partners
Norwest is a leading venture and growth equity investment firm managing more than $9.5 billion in capital. Since our inception, we have invested in more than 600 companies and currently partner with over 150 active companies in our venture and growth equity portfolio. The firm invests in early to late-stage companies across a wide range of sectors with a focus on consumer, enterprise, and healthcare. We offer a deep network of connections, operating experience, and a wide range of impactful services to help CEOs and founders scale their businesses. Norwest has offices in Palo Alto and San Francisco, with subsidiaries in India and Israel. For more information, please visit www.nvp.com.