Deal Radar 2008: Xactly

Xactly develops software-as-a-service for managing sales performance. It provides real-time, web-based, on-demand sales compensation solutions that help companies to sell more. The programs are affordable and enable smaller size companies to design, implement and manage sales compensation programs. The company was launched in 2005 by Christopher Cabrera and Satish Palvai and is headquartered in San Jose, California.

In April 2008, Xactly raised $30 million in capital to fund business growth, cement their position as leaders in their field and rollout new products. The investment was received from its existing investors as well as new investors Glynn Capital Management and Cheyenne Partners. In April 2007, the company secured $15 million in financing from Alloy Ventures and renewed commitment from their previous investors. In March 2006, the company raised $8 million led by Outlook and Spinner along with their initial investors. In 2005, Xactly completed a $4 million first round led by Bay Partners and Rembrandt Ventures. Looks like the company is extremely over-capitalized!

With its huge investments, Xactly is poised to be a leader in the emerging Sales Performance Management (SPM) market which Ventana Research forecasts to grow to over $8.2 billion by 2010. An article on ComputerWorld says in the second half of this year, the company plans to offer an Xactly Research module for users to evaluate their sales compensation and performance against others in a geographical or vertical industry.

Last year Xactly joined hands with RightNow to help companies in industries from technology to travel, to drive significant sales and service staff effectiveness as reported on ebizq.net. It has been named to JMP Securities Hot 100 privately held software companies.

In 2007, the company achieved a 94.4% customer renewal rate, better than the industry average of 90%, according to an article on compensationexpert. Although growth and revenue numbers are largely undisclosed, CEO Chris Cabrera, in an interview with TMCNet says the company achieved triple digit revenue growth, doubled its customer base and tripled its subscriber base.

Nonetheless, providing returns to investors on a $57 million investment seems like tall order!

This segment is a part in the series : Deal Radar 2008