Vancouver-based Clariti Cloud, which provides a SaaS solution for government permit and license processing, has secured an $18-million USD ($24.6 million CAD) investment from Vistara Growth.
Clariti has snagged almost 10 municipalities as customers over the past year, most recently selected by Honolulu, Hawaii.
Clariti co-CEO Cyrus Symoom said the company is witnessing increased demand for digital government services. Vistara echoed this point, adding that the need picked up during the COVID-19 pandemic and has persisted ever since.
The growth financing, which closed in Q1 2024, will help expand Clariti’s go-to-market teams, build relationships with system integrators, and support “an increased number of implementations.”
“We have been able to see first-hand the benefits that Clariti can provide customers through the modernization of legacy systems,” Vistara Growth principal Neil Kenley said in a statement. “Clariti drives significant improvements in speed and ease of use for both government employees and the citizens who use their platform – all while reducing the overall cost of ownership for the provider.”
Clariti provides state, provincial, and local governments in the United States and Canada with a low-code platform, digitizing the traditionally paper-based issuance, enforcement, and management of permits and licences. Clariti has snagged almost 10 municipalities as customers over the past year, including Bakersfield, California; Nanaimo, British Columbia; and, most recently, Honolulu, Hawaii.
In May 2023, Clariti acquired fellow enterprise permitting and licencing software Camino, a deal that saw Clariti add Camino’s Permit Guide as an add-on to its service.Vistara said a portion of its latest investment will be used to enable the development of additional features and support the integration of Camino into Clariti.
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Vistara’s investment in Clariti is coming from its fifth private credit fund, for which it secured $200 million out of its $540 million target in December. Vistara says it typically provides growth capital to enterprise SaaS companies to help them finance organic growth, mergers and acquisitions, or shareholder liquidity initiatives.
Vistara intends to use Fund V to back 18 to 24 companies across North America over roughly two and a half years, with cheque sizes ranging from $10 million to $30 million. Vistara said it will dedicate roughly 70 percent of the fund to US-based companies and 30 percent to Canadian companies, with about 10 percent of its capital reserved for follow-on investments.
So far this year, Vistara has made investments in two US-based supply chain companies in January. The firm also participated in Brim Financial’s $85-million Series C round earlier this month.
Clariti has a “sticky” customer base with additional capacity for growth as its solution is “mission critical” for governments, Vistara said in an email statement to BetaKit.
According to Intellectual Market Insights, the global GovTech market size is projected to reach $160.63 billion USD by 2031, and Canada is home to several players in this space. Over the fall, another government-focused software firm, HS GovTech Solutions, was taken private by Banneker Partners in a deal valued at $33.3 million.
Feature image courtesy Clariti.
