Rebate software startup Enable raises $120 million in funding at $1 billion valuation

Enable, a startup that sells rebate software to trading partners, has secured $120 million in Series D funding to accelerate the growth of its rebate management platform, the company said on Tuesday.

The round was led by Lightspeed Venture Partners, with participation from all previous lead investors including Menlo Ventures, Norwest Venture Partners, Insight Partners, and Sierra Ventures. This latest round brings the total raised since 2020 to $276 million, pushing the company’s valuation from over $800 million a year ago to $1 billion, making it a member of the highly coveted unicorn club.

In conjunction with the funding, Enable also announced the addition of Dan Levin and Arsham Memarzadeh to its Board of Directors. Dan Levin, the former President and COO at Box, and a current member of Box’s board, is recognized for his role in scaling the company and leading it through an IPO. Arsham Memarzadeh, a Partner at Lightspeed, is involved in leading the firm’s growth practice and investing in product-driven enterprise software companies, including investments in firms like Axonius, ClickUp, Personio, Verkada, and Wiz.

Founded in the UK in 2016 and later relocating its headquarters to San Francisco in 2020, Enable delivers cloud-based software tailored for manufacturers, distributors, and retailers, assisting in managing rebate programs within their supply chains. Notable customers of Enable include Schneider Electric and Home Depot.

Rebate programs, a common strategy in business-to-business transactions, offer purchase incentives and foster loyalty once customers meet specific spending benchmarks. Many sellers of physical goods continue to manually track progress using spreadsheets.

Enable co-founder and Andrew Butt said in an interview, “We’ve built the software company in a space that was quite unknown and quite behind the scenes, but people are realizing this is the way to actually drive the economy and drive the supply chain by using these rebates in a strategic way.”

In addition to the funding, Enable also said that it’s eyeing geographic expansion to bolster its global presence. The company presently employs about 550 individuals across the U.S., Canada, Europe, and Australia, with less than half of its revenue stemming from the U.S.

Butt, who steered the company during its early years without venture capital funding, stressed the continued focus on unit economics, but current priorities revolve around growth.

Arsham Memarzadeh from Lightspeed, who led the funding round, said, “Given the gap in the market, they’re able to persist and grow despite a lot of the macro (economic conditions). They’re not even slowing down and that’s rare to see at the scale.”

Memarzadeh also added, “Rebate programs are becoming ever more complex. They now represent the majority of profit for distributors and retailers, and they are major growth drivers for manufacturers. These outcomes combine with growing recognition that rebates drive behavior far more effectively than traditional pricing and discount mechanisms. It’s no longer optional to adopt a rebate management platform, and Enable is defining the future of the category. Since investing in Enable’s Series C last year, they’ve exceeded our expectations in what has otherwise been a tumultuous environment for enterprise software businesses. Lightspeed could not be more excited to deepen our partnership with Enable and be a larger part of their journey.”