Zomentum, which develops a sales automation and acceleration software platform for MSPs (managed IT services providers) and channel partners, has raised $13 million in Series A funding from Elevation Capital, Accel and Greenoaks Capital. Also, Eight Roads Ventures also participated in the round.
Zomentum doesn't fit into any single, traditional software category. It isn't your classic PSA (professional services automation) software package. And it isn't your traditional CRM (customer relationship management) platform. Instead, the software has components to help MSPs and IT channel partners to manage sales funnels, assessments, analytics, proposals and overall sales automation.
Early integrations include ConnectWise Manage, Datto Autotask PSA, Kaseeya BMS, and Syncro -- a fast-growing pure cloud RMM/PSA upstart. Zomentum also integrates with distributor systems such as D&H, Etilize, Ingram Micro, Synnex and Tech Data.
Zomentum Founders, Focus and Funding Plans
Zomentum is led by co-founders Shruti Ghatge & Rahil Shah (both pictured at top). Moreover, Get Channeled‘s Ted Roller — the well-known virtual channel chief — provided early guidance on partner strategy.
The Series A funding arrives roughly seven months after Zomentum raised $4.1 million in seed funding. Shortly after that seed round, the company hired channel veteran Shannon Mayer as VP of customer success. Mayer previously held key posts at The ASCII Group, Continuum (now owned by ConnectWise), LogMeIn and Datto.
Here's an interview with Ghatge from July 2020 -- in which she explained the company's formation and focus:Video link
Fast forward to present day. In a blog about Zomentum's Series A funding, Ghatge reinforced the company's pure channel sales model, and described the meaning of the new, Series A funding:
"Zomentum is on a rocketship heading towards outer space. The speed at which we are moving is unprecedented and exhilarating. To be able to keep up with the innovation, growth and expansion that is our future, we looked to create relationships with some tremendous investment partners who will have our back as we continue to push upwards. This funding is giving us the ability to quickly take our platform to new heights, it will give us the leeway to hire the right talent and will provide us the opportunity to create new programs and education for our partners."
Zomentum's Overall Market Opportunity
The company's overall goal, Ghatge adds, is to "fuel $600 Billion in IT economic activity for small and medium businesses (SMBs) worldwide."
How would that math work? Here's a purely hypothetical scenario from ChannelE2E. To drive $600 billion in economic activity annually, Zomentum will need about 100,000 partners/customers that each use its platform to drive $6 million in annual IT sales.
Meanwhile, demand for sales automation software that aligns with the IT service management (ITSM) industry appears strong. The anecdotal evidence includes Freshworks, a startup CRM and ITSM software provider that surpassed $300 million in annual recurring revenue (ARR) in 2020, which represented 40 percent year-over-year business growth from 2019. Freshworks is believed to be preparing for an IPO in the months ahead.