Odoo, a once-humble open-source project, has transformed into a leading business software provider, offering over 80 integrated apps catering to diverse business needs such as accounting, CRM, manufacturing, and marketing. With an app store featuring over 50,000 community-developed apps, Odoo serves a vast network of developers and partners worldwide.
What is an Open-Source Project?
An open-source project is a type of software development where the source code is made publicly available for anyone to view, modify, and distribute. It promotes collaboration and transparency, allowing developers worldwide to contribute to improving the software. Open-source projects are often free to use and are governed by licenses that outline how the software can be used, modified, and shared. Popular examples include Linux, Apache, and WordPress.
Odoo Open Source at Its Core
Odoo operates with a unique business model: the majority of its offerings remain free-to-access open-source software, with about 20% of its revenue stemming from paid “Odoo Enterprise” products. These premium offerings include advanced features tailored for businesses seeking extra functionality.
Fabien Pinckaers, Odoo’s founder, emphasized the company’s mission, stating on his blog:
“ERPs are traditionally expensive and resource-intensive to implement, often failing to meet the actual needs and evolving requirements of SMEs. We have developed a unique value proposition that is playing a pivotal role in the market.”
Significant New Funding Round
Odoo recently announced a rare funding round, a landmark moment since its $10 million Series B round in 2014. Leading the new investment is CapitalG, Alphabet’s growth equity fund, alongside participation from prominent investors like Alkeon, AVP, BlackRock, HarbourVest Partners, and Mubadala Investment Company.
Alex Nichols, a partner at CapitalG, praised the company’s innovative approach:
“Fabien and his team have built a one-of-a-kind business from their ambitious vision for a unified suite of tightly integrated business apps.”
Previous investors Noshaq, Summit Partners, and Wallonie Entreprendre also participated in this round by selling secondary shares to CapitalG and Sequoia. Notably, Summit Partners will remain Odoo’s largest institutional shareholder.
Related: Spirit Airlines Files For Bankruptcy As It Lost Around $2.2 Billion In Lasr 5 Years
Shaping the ERP Market
Odoo’s continued growth demonstrates its ability to address key challenges in the ERP market, making enterprise software more accessible and effective for small and medium enterprises (SMEs). With its innovative blend of open-source accessibility and premium features, the company is well-positioned to shape the future of business software solutions.
As Odoo continues to expand its community and product suite, its vision for a unified, cost-effective business software ecosystem is resonating across industries globally.
