Zip is a procurement software. It gives employees one place to request purchases, handling approvals across departments before connecting to financial systems.
As of January 2025, it raised $370 million and it’s valued at $2.2 billion. Pretty crazy, right?
Here’s how it’s founder Rujul Zaparde:
- found the idea,
- got the first customers,
- raised the money for his startup.
🏢 Current Company: Zip
- Company size: ~350 people
- Money raised: $370 million
- Latest valuation: $2.2 billion (Series D)
💡 Coming Up with Zip’s Idea
Initial Context
- Started during COVID lockdown (March 2020)
- Actually pivoted during YC – they didn’t start with procurement
- Got crucial advice from Dalton (YC partner): “Find an old software category that hasn’t changed much and identify what’s new”
Why Procurement Software Makes Sense
Though the transcript doesn’t detail the exact “aha moment”, enterprise procurement is actually a massive pain point:
- Every purchase needs multiple approvals (budget, legal, IT, security)
- Without software, this happens through emails and spreadsheets
- Enterprises spend millions or billions on purchases
- Compliance failures can be extremely costly
- $20K/year is tiny compared to the risk and inefficiency they’re solving
🎯 Getting First Customers
At First, Cold Outreach Only
- Made a rule: First 10 customers must be completely cold (no network)
- Used LinkedIn as primary channel
- Maxed out LinkedIn connections daily
- Messaged people who accepted connections