Phocas Software, cloud-based data analytics SaaS company secures £33M

Phocas team Image credits: Phocas

Phocas Software, a Sydney-based global data analytics software company. The cloud-based data analytics SaaS company operates in the US, Australia and the UK. Now, this business intelligence software company raised one of the biggest rounds so far in 2021.

Investment round led by Ellerston Capital

Phocas bagged $45M (nearly £33M) funding in a round led by Ellerston Capital, which pumped in $35M (nearly 25M) and the rest of the amount came from existing investor OneVentures. Notably, this is the second equity-based funding round for Phocas after it was bootstrapped. In 2018, the company raised $7M (nearly £5M) from OneVentures.

It was announced that Phocas will use the investment to fund the development of its data analytics products and new financial products. It is working on a new budgeting forecasting and planning designed to save the time of finance teams and enable easier collaboration. Also, it will bolster its AI capabilities and reach new customers across the world, while focusing on expanding its data tools to reach new verticals.

Ellerston investment director Toni Korsanos said, “There are lots of ways the business can grow. There’s always execution risk, but this company has demonstrated a good track record of strong revenue growth, building strong products and penetrating these geographies and verticals. But over and above this, we like that it’s still founder-led, there’s real passion in the founders and there’s a focus on driving a strong culture and attracting great talent.”

This investment is a part of Ellerston’s JAADE fund worth $140M (nearly £102M). Phocas sits alongside companies including travel software company SiteMinder and disability support platform Mable in the portfolio.

Eyes to accelerate expansion

Phocas eyes to reach $50M (nearly M) revenue this financial year but had a target of hitting $100M (nearly M) within the next three years prior to the new funding.

Already, the company operates in the US and the UK and Australia with over 70% of its revenue coming from overseas. Now, it is in plans to accelerate its expansion in Europe and Asia despite the COVID-19 crisis. The expansion plans have been pushed by another 6 to 12 months.

Phocas co-founder Myles Glashier is confident the business will exceed its $100M target with the new capital injection.

Speaking to The Australian Financial Review, Mr Glashier said, “We’ve had very little outside investment [until now]. We’ve been around for 20 years and we like the idea of being around for another 20, and 20 more after that.”

“Phocas is like Siri, but for business (and without the voice component). We see ourselves investing in artificial intelligence to have more automation of what people are doing and to provide insights that people hadn’t thought to ask in the first place. We’re also building new products and we’ve moved into the CFO space,” he said.

What does Phocas do?

Founded in 2001 by Aussie entrepreneur Myles Glashier and English businessman Paul Magee, Phocas offers cloud-based subscription data analytics software for manufacturers, distributors and retailers. It gives them insights into how to better run their businesses.

Its flagship analytics product pitches against tech giant Microsoft’s Power BI, Tableau and DOMO. Its customer base also includes businesses such as Hairhouse Warehouse, Gazman and Repco.

To detail what Phocas does, its cloud-based data analytics application plugs into enterprise resource planning systems and multiple other data sources. It has over 20 global ERP partners including US giant Epicor. Its technology lets people across a company to collate and understand the key numbers essential to their work, thereby letting them to make better decisions.

Phocas is undergoing the process of becoming a certified B Corp. To attain this status, businesses have to meet verified standards of social and environmental performance to balance profit and purpose.