$10 million in Series A funding has been successfully secured by Clazar, an innovative startup that helps Independent Software Vendors (ISVs) scale their sales using key cloud platforms including AWS, Microsoft Azure, and Google Cloud Platform (GCP). This brings Clazar’s total raised funds to $14 million since its establishment in 2023.
With cloud marketplaces expected to support $45 billion in sales of third-party software by 2025, up 84% CAGR over five years, according to Canalys, their strategic significance is becoming more and more clear. These platforms offer GTM (Go-To-Market) teams a rare chance to connect with clients who are already prepared to make an investment in new technologies by combining the convenience of online purchases with the discipline of traditional sales channels.
The ability to access a huge $340 billion in committed buyer spending across the major cloud service providers is what makes cloud markets so appealing to ISVs. According to Clazar, using cloud marketplaces to channel these current financial commitments can expedite budgeting procedures and save sales cycles by up to 40%. Additionally, transactions completed through these channels would typically have a 27% higher chance of closing and can be up to 80% larger. Clazar claims that these advanced GTM techniques can be highly effective, accounting for as much as 20% of overall revenue.
Notwithstanding these benefits, the road to a successful marketplace integration would be paved with obstacles. These include the requirement for continuous registration, regular updates to listings, upholding compatibility with cloud partner portals, and efficient use of CRM systems for co-selling campaigns.
Clazar’s platform provides a thorough solution that fast-tracks the setup process and improves the productivity of software providers’ revenue-making operations within the cloud ecosystem. By doing so, Clazar reduces the complexities often present in this sector. As cloud marketplaces continue to expand, Clazar’s service in assisting ISVs in navigating this ever-changing landscape is likely to become increasingly crucial for businesses seeking to tap into this burgeoning market potential.
“Historically, the substantial technical work and resources required to launch on cloud marketplaces have been expensive and often prohibitive for startups and smaller businesses, even for larger enterprises,” Clazar’s CEO and co-founder Trunal Bhanse has noted. “However, the channel is becoming increasingly crucial for success. Clazar offers an automatic, intuitive, comprehensive solution applicable to all major cloud markets. This keeps pace with the constant shifts within the ecosystem, irrespective of a company’s place or stage in its cloud GTM journey. Software purchase and sales are undergoing a generational shift, and Clazar is at the forefront of propelling the entire industry forward. We are excited to utilize this Series A funding and are grateful for our forward-thinking investors.”
Mr. Bhanse, who had previously led an in-house team of engineers to construct and manage a similar platform, had experienced first-hand the intricacies and challenges of managing cloud marketplace operations. Based on this experience, he and CTO and co-founder Aayush Bahuguna commenced Clazar. Both individuals have an extensive history of creating impactful solutions at companies such as Facebook, Zenefits, and LinkedIn. They honed their expertise in creating complete lifecycle marketplace and infrastructure products while at AirBnB.
“Our goal is to democratize cloud GTM access for software businesses by automating every deal’s ‘opportunity to cash’ lifecycle,” Aayush Bahuguna, CTO and Co-founder of Clazar has stated. “This ranges from product discovery through public presence on the hyperscaler marketplaces to the SalesOps and transaction orchestration that seal the deal.”
