Clazar raises $10M Series A to modernize SaaS sales across cloud marketplaces

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Clazar, a startup that automates software sales through cloud marketplaces, today announced it has raised $10 million in a Series A funding round led by Ridge Ventures and Ensemble VC. The company, founded in 2023, has now raised a total of $14 million to streamline the technical and operational challenges of selling on marketplaces operated by Amazon Web Services, Microsoft Azure and Google Cloud.

“When we started Clazar, all the pieces came together — we were experts at scaling startups, had identified the right problem to solve with cloud marketplaces, and the market timing was perfect. The moment we brought a product to market, we started seeing immediate traction,” said Trunal Bhanse, CEO and co-founder of Clazar, in an exclusive interview with VentureBeat.

Clazar’s software platform integrates with leading cloud marketplaces like AWS, streamlining the co-selling process between software vendors and cloud providers. Credit: Clazar

Eliminating cloud go-to-market complexity

Large software companies like Confluent, where Bhanse previously worked as director of engineering, have had to invest significant resources to sell through cloud marketplaces. Clazar aims to make this capability accessible to software vendors of all sizes. 

“Bridging the gap between CRM systems used by sales teams and the technical interfaces of cloud marketplaces, while providing a unified architecture, is a complex challenge,” Aayush Bahuguna, co-founder and CTO of Clazar, told VentureBeat. “By integrating these systems, we’re empowering sales teams to seamlessly manage the full quote-to-cash process on cloud marketplaces.”

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Registration, listing, keeping up with marketplace updates, building interconnectivity between cloud partner portals and CRM systems, and tracking co-sell opportunities all involve technical complexity and significant resources before yielding results. Clazar’s platform eliminates this overhead, accelerating time to revenue for software vendors.

Cloud marketplaces become default for B2B software sales

With cloud marketplaces expected to drive $45 billion in third-party software sales by 2025, Clazar is riding a massive wave of growth and transformation in how enterprise software is bought and sold.

“Today’s sales model of cold calling and mass emails is getting outdated. Cloud marketplaces streamline the entire process of buying and procuring software,” said Bhanse. “In a few years, this will be the default starting point for every SaaS company to accelerate their go-to-market.”

Clazar sees cloud marketplaces becoming the primary go-to-market motion for B2B software over the next 5-10 years. Buyers are gravitating to marketplaces for the simplified procurement process and ability to apply cloud spend commits, which can lead to faster sales cycles, larger deal sizes, and win rates up to 27% higher.

Scaling to cement early traction

In less than a year since launching, Clazar is already serving about 100 paying customers, underscoring the high demand for its solution. With the $10 million Series A funding, the company plans to expand its go-to-market efforts, enhance product capabilities, and scale its team to capitalize on the immense market opportunity.

“The Series A allows us to build a large go-to-market team so we can go and work with these customers hand in hand, be their trusted advisor as we roll out the product to more and more of our user base,” Bhanse said. 

As incumbent software vendors and startups alike rush to establish their presence on cloud marketplaces, Clazar aims to become the de facto platform powering this transition. Building out its product and go-to-market teams to accelerate growth will be key to cementing its early traction and fending off potential competitors.

With 25-30% of enterprise software procurement now flowing through cloud marketplaces, a figure expected to reach 75% by 2026 according to Bessemer Venture Partners, the market timing for Clazar couldn’t be better. As the cloud becomes the dominant commerce channel for software, Clazar is positioned to be the driving force enabling seamless sales on these marketplaces.