Enable lands $94M to help B2B companies manage their rebate programs

Enable, a startup selling access to a platform that helps business-to-business (B2B) companies manage their rebate programs, today announced that it raised $94 million in an oversubscribed Series C round led by Insight Partners with participation from Lightspeed Venture Partners, SE Ventures, PSP Growth and HarbourVest Partners. Bringing Enable’s total capital raised to $156 million, the proceeds will be put toward increasing headcount and expanding to new markets, particularly Europe, CEO Andrew Butt told TechCrunch in an interview.

Rebates are a familiar concept in the consumer space, but they tend to work a little differently in B2B. B2B companies offer rebates when their customers achieve some benchmark, such as total spend, purchasing a collection of products or a marketing referral. The challenge becomes keeping track of these benchmarks and progress toward them, ensuring customers receive the rebates to which they’re entitled and — in the process — fostering relationships.

Enable, which Butt co-founded in 2016 with Denys Shortt, aims to remove some of the burden of rebates and ideally turn them into profit drivers. The platform surfaces deal term and sales incentive data for manufacturers, distributors and retailers, providing insights into what’s owed versus collected, the status of rebate deals and what’s on deck.

Butt says he was inspired to launch the company by his experiences in the B2B space, including at Enable Informatix, a property management software-as-a-service vendor he co-founded and sold to Sovereign Capital in 2010. “For many organizations, rebate and incentive data is typically tucked away in massive spreadsheets where one formula error will break everything,” Butt said. “Often, this data is the responsibility of a single employee, meaning few people understand the data and how these deals work.”


Image Credits: Enable

In contrast, Enable provides collaborative dashboards to author, execute and track the progress of rebate deals. The platform, which allows customers to create joint business plans, also forecasts rebate activity, attempting to guarantee companies that they’ll be able to pay and collect on all rebates owed.

Enable recently launched a special pricing agreements product that connects to a company’s supply chain to improve transparency on claimbacks, the agreements between distributors and manufacturers based on sales to a contractor. Elsewhere, Enable introduced new services to manage a wider range of incentives, including a module that allows sales and pricing teams to align around large deals and a commissions system that delivers rebate status tracking to manufacturers.

“Enable helps companies incentivize the purchasing behavior of partners while also ensuring they collect all incentives owed to them,” Butt said. “Our biggest competition is Microsoft Excel spreadsheets or overextended enterprise resource management platforms.”

Butt claims that around 10,000 companies are using Enable’s platform today and that growth has been “accelerating” year-over-year after expanding to the U.S. and Canada (although he didn’t define “growth”). Enable employs 400 people, and the company expects to end the year with 435 throughout the U.S., U.K., Canada and Australia.

“We’ve been extremely successful with our growth in this market, and [the Series C] round adds fuel to that growth. At the same time, it helps us extend our vision,” Butt said. “Rebates are incentives. They are a key way to drive behavior between partners. It’s our vision to empower thriving partner ecosystems, so as we continue our growth you’ll see us adding products that enhance partners alignment on goals and incentives while increasing transparency and easing friction, allowing every partner to flourish.”

Enable lands $94M to help B2B companies manage their rebate programs by Kyle Wiggers originally published on TechCrunch

Enable bags $45M for B2B rebate management platform

Enable, a startup developing a cloud-based software tool for business-to-business rebate management, announced Wednesday a $45 million Series B funding round.

The round is led by Norwest Venture Partners with participation from existing investors Menlo Ventures and Sierra Ventures, and a group of angel investors. Including the new round, the company has raised a total of $62 million, which includes a $13 million Series A raised in 2020.

The company, which started in the U.K. and moved to San Francisco in 2020, was co-founded by Andrew Butt and Denys Shortt in 2015 but launched fully in 2016. Its technology automates how distributors and manufacturers create, execute and track rebates. These types of trading programs are a common industry practice and are relied on by distributors as a way to turn a profit.

Since raising its Series A last year, Butt, chief executive officer, moved to the Bay Area, grew its North American operations to 60 people, tripled revenue and more than tripled its customer base, he told TechCrunch. The new funding will be used for product innovation and building sales and go-to-market teams.

“The Series A was proving traction in the U.S. and Canada and gave us the ability to hire a U.S. leadership team,” he added. “When we saw that momentum, the market size was large and the opportunity was now getting bigger and bigger, we started scaling up the business.”

As customer needs changed and incentives were growing in terms of revenue and profitability, Enable saw that they were more critical to manage; the incentives needed to be more dynamic and easy to make targeted and personalized. In a sense, incentives have “gone from being blunt instruments to very sharp in size and volume,” Butt said.

Reaching the year over year revenue doubling was a milestone for the company, and his immediate next steps are to get a fully ramped team so Enable can continue on that growth trajectory. The market for incentives is big, but “there is no credible competition,” so the company is also working to build that distribution and sales team now, he added.

It was also over the past year that Butt met Sean Jacobsohn, partner at Norwest Venture Partners, who, as part of the investment, joined Enable’s board of directors.

Jacobsohn had noticed Enable and asked for an introduction to the company when it hired Jerry Brooner as its president of global field operations. Jacobsohn was tracking Brooner’s next moves after leaving Scout, a Workday company, and the hire got his attention.

Enable checks all of the boxes Jacobsohn said he looks for in a company: strong CEO, a good team and good customer feedback — many of them were dissatisfied with the legacy software, he said.

“I also love companies going after a big market where there is no credible competition,” Jacobsohn added. “There is a lot of greenfield space here. What’s great about a player like that is they can come in, create a category and be the new generation cloud player. This isn’t something someone can wake up and start. You need deep domain expertise.”