Companies are prioritising investment in supply chain management: o9’s COO

Supply chain management software provider o9 Solutions saw its valuation soar past $3.5 billion after raising $116 million in July 2023. The surge in demand post-Covid, a heightened corporate focus on supply chain management, and ongoing digital transformation have positioned the company to aim for decacorn status (a valuation exceeding $10 billion) while setting the stage for a potential future IPO.

During his recent visit to India for its flagship program aim10x in Bengaluru, chief operating officer Igor Rikalo spoke with TechCircle about the company’s current technology offerings, market demand, client sentiment, and future. He was joined by Siddhartha Niyogi, o9 India CEO and managing director.

Businesses are facing increasing variability and volatility in their operations, driven by factors such as globalisation, geopolitical risks, weather disruptions, and labour strikes, Rikalo said. Supply chains have grown longer and more susceptible to disruptions, making resiliency a top priority. This shift demands advanced technology capable of processing external data from supplier networks and leveraging algorithms for decision-making.

“Companies are making investment in supply chain management a top priority. As competition intensifies, they are under pressure to reduce costs and do more with fewer resources, making investment in supply chain planning technology one of the fastest and most impactful ways to generate value.”

To meet this demand, Rikalo said that the Dallas-headquartered company is innovating at a fast pace, delivering four new releases every year. “Over the past year, we've implemented several foundational technologies, including Data Lakes, big data platforms, and computational frameworks.” The company is also investing in developing artificial intelligence (AI)-driven agents for business and supply chain planning. “Early pilots with global customers have demonstrated promising results, and we see significant potential for the future,” he said. 

‘Active prep to be IPO-ready’

The company has 17 offices globally with a presence in 30 nations. The primary markets include North America and Europe, complemented by a significant customer base in Japan, India, Korea, and Brazil. “We are developing a growing presence in China, which we anticipate will become a key area of growth in the coming years,” said Rikalo.

The company has utilised funds from the last round to support expansion and product development. “On the expansion front, we are focused on enhancing our global distribution and delivery capabilities. A significant portion of the investment is also directed toward advancing our product, including features development,” said Rikalo.

Speaking more about o9’s plans to go public, a sentiment expressed by the company’s top brass in recent time, Rikalo said that these aspirational goals, and the team is actively building the internal capabilities to be IPO-ready. This includes strengthening compliance and audit functions, ensuring efficient operations across multiple countries, and addressing other key requirements for functioning as a public company.

“We aim to complete these preparations by the first half of 2026. However, the timing of the IPO itself will depend on external factors such as market conditions and investor sentiment, which remain beyond our direct control. We'll evaluate the situation closer to that time to determine the best course of action,” he added.

To be sure, in October the firm reported that its annual recurring revenue (ARR) in Q3 2024 grew 28% year-over-year.

o9 in India

Of the over 3,000 employees globally, two-thirds of them based in India. The presence in India has been centered largely in Bengaluru which has 90% of o9 India’s employees. “We also have a Coimbatore office with around 120 employees and are set to open a new office in Hyderabad in January. While starting small, the Hyderabad office represents a strategic expansion, featuring a 160-seat training facility. This aligns with our collaboration with the Telangana government on a skills academy initiative,” said Niyogi.

In India, o9 has clients like Asian Paints, Berger Paints, Mankind Pharma, and Godfrey Philips, among others. Niyogi added that the company looks at gaining headway into the retail sector going forward.