AppDirect operates a B2B marketplace and set of tools that let businesses and tech providers monetize, buy and manage cloud and other business software through advisors and white-labeled marketplaces. Its platform generates revenue from monetization services and transaction fees on products sold through the catalog. AppDirect also runs Capital Invest, a financing program (launched in 2021) that provides upfront payments to tech businesses based on their last three years of business data and annual recurring revenue. The Capital Invest loans include back-office support and provider contracts, and borrowers make annuity payments to AppDirect that continue in perpetuity. With a new $100 million investment from CDPQ, AppDirect plans to expand access to that financing program to more small- and medium-sized tech businesses. The company was founded in 2009 and is based in San Francisco and Montreal. AppDirect operates a subscription commerce platform that removes complexity from building recurring business models and enables businesses to sell any product as a service. Its AppSmart division is a B2B technology marketplace and ecosystem that helps channel partners and technology advisors start and scale recurring-revenue businesses. AppSmart provides digital back-office tools, access to a marketplace of software and services, and the AppSmart Invest program that lets partners access capital while retaining 100% ownership and control. AppDirect plans to expand AppDirect Capital into a catalog of financial products to support channel partners’ growth and transformation. The company is headquartered in San Francisco and cites enterprise customers including Microsoft, Google, Deutsche Telekom, Jaguar Land Rover, and ADP. CDPQ has been an active shareholder since an initial equity investment in 2020 and the partnership aims to support AppDirect’s expansion in Montréal. AppDirect offers a subscription-based commerce platform that connects channels, developers, and customers. The company is undertaking a cloud-focused development project that includes advanced billing services and aims to expand its Montréal footprint. AppDirect plans to use up to C$54.8M (US$40M) in repayable financing from the Government of Quebec (via Investissement Québec) to support the project. The province expects the project to create 730 new jobs in Montréal over five years and may forgive interest on the loan depending on job creation. AppDirect's Canadian subsidiary employs 190 people in Montréal, where its office (opened in 2014) will become the firm's Canadian headquarters; it also has an office in Calgary. Founded in 2009 by Daniel Saks and Nicolas Desmarais, the company is San Francisco–based and led by the two co-CEOs. Last fall the company raised US$185M led by the Caisse de dépôt et placement du Québec, taking total funding to US$465M. AppDirect offers a subscription commerce platform that removes the complexity of building recurring business models and enables companies to sell any product through any channel. The platform powers millions of subscriptions worldwide and supports instant provisioning and integrated commerce flows across online and offline channels. AppDirect reports strong scale: Gross Merchandise Value (GMV) grew more than 1,500% since 2015 to over US$1 billion, and the company services more than 2,000 merchants. Its customer roster includes large enterprises such as Vodafone, Keller Williams, ADP, Honeywell, Deutsche Telekom, Jaguar Land Rover, Comcast, and Sage. The company says it will use new funding to accelerate organic expansion, pursue strategic acquisitions, and add headcount as it expands globally. AppDirect’s stated mission is to make technology globally accessible and to drive the shift to B2B subscription commerce. AppDirect operates a marketplace that makes it easier for enterprises to buy cloud services from providers like Box, Google and Symantec and serves as a referral service for those businesses. The company has developed expertise around billing and app management beyond its storefront, which it still plans to deploy. Through partners such as Comcast, Deutsche Telekom, Telstra, ADP and FICO, AppDirect claims it reaches about a quarter of small businesses worldwide and has about a million paid business subscribers. Subscriber count grew roughly 300% year over year, and the company says it is doubling its revenue growth annually. AppDirect is not currently profitable but says it is prudent with its capital; it has about 350 employees, half of whom work outside the U.S. in offices including Stockholm, Tokyo and Munich, and half of its revenue is international. The company recently acquired app platform AppCarousel and plans to use parts of the new funds to expand its international footprint.

Total raised

$652M

Funding rounds

10

Latest round

Equity

Latest activity

Jan 2024