Toronto-based startup Forma.ai has raised $57.8 million CAD ($45 million USD) in its Series B round.
The investment was led by ACME Capital, with contributions from Crosslink Capital, Gaingels, and return investors Golden Ventures, Uncork Capital, Xfund.
The all primary round closed in April. Forma.ai declined to disclose the breakdown of equity to debt of the $57.8 million CAD
Forma.ai is a sales compensation platform provider that combines human controls with artificial intelligence (AI) to “turn sales compensation into science.” The platform aims to help organizations to design, execute, and optimize their sales compensation strategy through data. Claiming to have more than $1 billion in annual managed commissions, Forma.ai’s offering has attracted the likes of Autodesk, TrustPilot, OpenTable, CareerBuilder, and others.
Though it was founded in 2016 by Nabeil Alazzam (CEO), Forma.ai didn’t emerge from stealth until late 2020.
Forma.ai raised its Series B financing following a period of significant growth. Forma.ai claims to have achieved 400 percent revenue growth in over the last year amid rapid enterprise adoption of its platform.
With a current headcount of more than 120, the company hopes to expand to over 200 by the end of 2022. Although headquartered in Toronto, Forma.ai has distributed teams across Canada and the United States. Lisa Welch joined Forma.ai earlier this year as senior vice president of sales, representing the second executive to join the company from industry incumbent Xactly Corp. VP Professional Services Justin Lane joined the team last year.
Forma.ai’s latest funding brings the company’s total capital raised to date to $58 million USD. Forma.ai previously closed $12.5 million CAD in Series A funding last March. According to Crunchbase, Forma.ai also received $3 million in seed funding from Golden Ventures in February 2020.
Backed by $57.8 million CAD in fresh funds, Forma.ai intends to use the capital to expand its product development and go-to-market capabilities to meet growing demand in the sales performance management (SPM) solutions market, which is projected to grow from $1.5 billion USD in 2020 to $3.4 billion USD by 2026.
A report by market research firm Markets and Markets said that the demand for SPM is driven by growing automation to improve visibility and avoid incentive compensation calculation inaccuracies. It also noted a rising demand for metric-driven sales tools and increasing remote work options to improve salespeople’s engagement and performance.
Image courtesy of Forma.ai