Zip, a leader in procurement orchestration, has been named to the Forbes Fintech 50 list for 2025, solidifying its position as an innovator in enterprise procurement. This recognition follows a remarkable year of expansion, funding, and technological advancements that have transformed how businesses manage procurement and spending approvals.
Founded in 2020, Zip has rapidly emerged as a disruptor in the fintech space, streamlining traditionally complex procurement processes for enterprises. With over $107 billion in expenditures processed in 2024, Zip is empowering organizations to save time, reduce costs, and enhance visibility over spending.
This article explores Zip’s journey, key achievements, funding milestones, and what its inclusion in the Forbes Fintech 50 signifies for the future of procurement technology.
What is Zip?
Zip is a procurement orchestration platform designed to simplify business spending by integrating purchasing approvals, workflows, and spend management into a single, user-friendly system. Unlike traditional procurement solutions that operate in silos, Zip offers a holistic approach that connects all stakeholders, including finance, IT, legal, and security, ensuring seamless approvals and cost transparency.
Key Features of Zip’s Procurement Platform:
- End-to-End Procurement Workflows – Automates and centralizes approvals across departments.
- AI-Powered Invoice Processing – Uses machine learning to extract, validate, and process invoices efficiently.
- Global Vendor Management – Ensures compliance and efficiency in dealing with international suppliers.
- Seamless Integrations – Works with enterprise tools such as SAP Ariba, NetSuite, Workday, and Coupa.
- Customizable Approvals & Policies – Tailored to meet industry-specific regulatory requirements.
Why Enterprises Choose Zip
Unlike legacy procurement systems that focus primarily on spend tracking, Zip emphasizes user experience, automation, and AI-driven decision-making. This approach allows businesses to move faster while reducing unnecessary expenses.
Zip’s Growth and Market Adoption
Zip’s recognition in the Forbes Fintech 50 is a testament to its rapid adoption among global enterprises.
Key Milestones in 2024:
- Processed over $107 billion in expenditures through Zip’s platform.
- Achieved a 25% reduction in procurement cycle times, saving enterprises millions in operational costs.
- Delivered a 3.6% decrease in overall spend, demonstrating strong ROI for clients.
- Expanded footprint in EMEA by opening a London office and increasing its regional workforce by 400%.
Enterprise Clients Using Zip:
Zip has quickly become the go-to procurement tool for high-growth and large-scale organizations, including:
- OpenAI – Managing procurement at scale for the AI powerhouse.
- Snowflake – Optimizing IT and cloud spending for the data platform giant.
- Prudential – Enhancing financial controls and compliance in procurement.
- Northwestern Mutual – Achieved 18% cost savings and a 20% increase in spend under management after implementing Zip.
These companies, among others, have experienced increased efficiency, improved compliance, and significant cost reductions by leveraging Zip’s AI-powered workflows.
Recent Funding and Zip’s $2.2 Billion Valuation
In October 2024, Zip secured a $190 million Series D funding round, led by BOND, with participation from:
- DST Global
- Adams Street Partners
- Alkeon Capital
- Existing investors Y Combinator and CRV
Impact of the Funding:
- Increased Valuation to $2.2 Billion – Zip is now among the fastest-growing fintech unicorns.
- R&D Expansion – Focused on AI-powered procurement automation.
- Global Growth – Strengthening its presence in Europe, North America, and APAC.
This funding underscores investor confidence in Zip’s ability to redefine procurement technology and expand into new markets.
Why Zip Made the Forbes Fintech 50 List
The Forbes Fintech 50 list annually highlights the most innovative financial technology companies that are disrupting traditional industries. Zip’s inclusion is a significant achievement in the procurement sector, which has historically lagged behind in digital transformation.
Why Forbes Recognized Zip:
- Market Disruption – Transforming a slow, manual procurement process into a fully automated, AI-driven system.
- Enterprise Growth & Adoption – Processing billions in expenditures for Fortune 500 companies.
- Cutting-Edge AI & Automation – Leveraging machine learning to enhance spend visibility and control.
- Global Expansion – Scaling operations across the U.S., Europe, and Asia-Pacific.
This recognition validates Zip’s impact in the fintech ecosystem and positions it as a leader in procurement innovation.
What’s Next for Zip?
Zip is not slowing down. The company has ambitious plans for 2025 and beyond, including:
- Launching Zip Premier – An enterprise-grade procurement suite designed for multinational corporations.
- Expanding AI Capabilities – Enhancing automation in purchasing, compliance, and contract management.
- Global Expansion – Strengthening operations in Asia-Pacific and Latin America.
- Potential IPO – Given its rapid growth and valuation, analysts speculate that Zip could go public within the next two to three years.
The Future of Procurement Technology
With the rise of AI-driven procurement, companies like Zip are revolutionizing spend management. As businesses seek faster, more transparent purchasing solutions, Zip is well-positioned to lead the next wave of enterprise fintech innovation.
Conclusion
Zip’s recognition in the Forbes Fintech 50 reinforces its status as an industry leader in procurement technology. By enabling enterprises to automate approvals, optimize spending, and improve compliance, Zip is addressing a critical gap in financial technology.
With strong investor backing, a $2.2 billion valuation, and continued innovation in AI-powered procurement, Zip is on track to reshape the enterprise software landscape.
As businesses continue to prioritize spend optimization, Zip’s influence will only grow, making it a company to watch in 2025 and beyond.
