Xensam Secures $40 Million in Maiden Funding Round to Fuel AI-Driven Software Asset Management Expansion

Tech News February 12, 2024

Xensam, a Stockholm-based startup specializing in AI-driven software asset management, has secured $40 million in its first external funding round. The investment comes from Expedition Growth Capital in London and will be utilized to further enhance Xensam's AI technology stack, expand its workforce (currently at 100 employees), and make inroads into the U.S. market.

The valuation of the company remains undisclosed, but Xensam's CEO, Oskar Fösker, mentioned that he and his brother, Gustav (the CTO), continue to be the majority shareholders. With 200 customers, including notable names like Volvo's Polestar and Northvolt, and an annual recurring revenue growth rate of 126%, Xensam is making strides in the competitive field of software asset management.

The software asset management space, alternatively known as software expense management or software license management, is highly competitive due to the significant challenges organizations face in managing diverse software licenses under their roofs. With global spending on enterprise software reaching nearly $900 billion in 2023, the demand for solutions to track and understand software usage is on the rise.

Xensam distinguishes itself by using AI to provide a real-time overview of the applications utilized across an organization's network, spanning both cloud and on-premise environments. Fösker highlighted the use of AI in handling large amounts of data during the software normalization process, converting raw data into standardized applications enriched with metadata. This approach helps organizations gain visibility into software usage, preventing overpayments and addressing potential security vulnerabilities.

The startup's success is attributed to its ability to organize and analyze information effectively, setting it apart from competitors. Fösker hinted at upcoming product launches in Q2 but did not provide specific details. The decision to seek external funding after eight years of bootstrapping was driven by the founders' confidence in their business model and the need for financial stability to ensure sustainability.

Expedition Growth Capital, as the sole investor, expressed excitement about collaborating with Xensam. Oliver Thomas, founder and managing partner at Expedition, praised Xensam's critical solution, enabling companies with thousands of employees to monitor and manage software usage. The partnership marks Expedition's involvement as the first external investor in Xensam, aligning with the startup's cultural values and growth journey.