The o9 Solutions History and Growth Story
In this video, we will discuss the history of o9 Solutions, a Dallas-based tech startup that has grown to $150 million in annual recurring revenue. The company was founded in 2009 by three entrepreneurs who saw a need for a better way to plan and make decisions in the supply chain industry.
The three common problems that o9's founders saw were:
1. Decisions made at the department level were disconnected from each other.
2. People had to use many different applications that were not integrated, resulting in them reverting to spreadsheets, even for business critical decisions.
3. People were unable to get the answers they needed to make decisions because of slow and unscalable applications.
To solve these problems, o9 built a platform that acts as a company's digital brain. The platform integrates massive amounts of data, generates insights from it, and uses those insights for better decisions all in real time. The underlying structure of this digital brain is a digital twin of the end-to-end business, which o9 calls the Enterprise Knowledge Graph.
The o9 Digital Brain has been used by companies in a variety of industries, including retail, manufacturing, and transportation. The platform has helped these companies improve their financial performance, reduce their environmental impact, and make better decisions faster.
In 2022, o9 raised $300 million in funding from General Atlantic's beyond net zero venture and Generation Investment Management. This funding will help o9 accelerate its growth and continue to help companies achieve their financial and sustainability goals.
How did a Dallas based tech startup grow to $150 million in annual recurring revenue? It all started with our founders observing how the increasing variability and complexity of supply chains necessitated a new approach to planning and decision making. What they saw were three common problems. First, decisions made at the department level disconnected from each other.
Second, people having to use many different applications that are not integrated, resulting in them reverting to spreadsheets, even for business critical decisions. And third, people unable to get the answers they need to make decisions because of slow and unscalable applications. To solve these problems, our founders set out to build one seamless platform to enable better and faster planning and decision making at scale. And in 2009, o9 Solutions was born.
Our platform acts as a company's digital brain, allowing it to integrate massive amounts of data, generate insights from it, and use those insights for better decisions all in real time. The underlying structure of this digital brain is a digital twin of the end-to-end business, which we call the Enterprise Knowledge Graph which was made possible by a breakthrough combination of graph, database, technology and AI, all running natively in the cloud. After perfecting the technology with a world-class team, in 2014, we achieved lift-off with the launch of our cloud native AI powered platform.
The o9 Digital Brain. Armed with our platform and a handful of employees, we began beating out heavyweight competitors and landed our first series of major clients in the U.S. market. As these early adopters validated the power of the "o9 Digital Brain," we started winning more and more clients. Expanding to more geographies and branching out into new industries every year.
To accelerate our growth, we created an alliance network with premier consulting and technology firms. In 2020, we welcomed our first investor KKR, and joined the ranks of the unicorns with a $1,000,000,000 valuation. When the pandemic struck our customers and go-to market teams went remote and continued working with new and existing customers. By early 2022, we reached a milestone of $150 million in annual recurring revenue, our strongest growth year yet.
But our mission isn't just to improve companies financial performance. We believe better decisions for companies equal a better outcome for our planet, too. That's why in February 2022, we welcomed two new investors. General Atlantic's beyond net zero venture and Generation Investment Management, who believe in our mission of leveraging the o9 Digital Brain to help companies achieve both their financial and sustainability goals, and who decided to invest $300 million to fuel our continued growth.
And while we're proud of what we've achieved, we won't rest until every enterprise has the planning and decision making platform it needs to perform at today's speed and scale. Because planning matters to your PNL and the planet.
Gartner® Magic Quadrant™ 2023
o9 Solutions recognized as a Leader in the 2023 Gartner® Magic Quadrant™ for Supply Chain Planning Solutions. Download for free the full Magic Quadrant.