The UK tech landscape is at a pivotal moment, particularly in the evolution of cloud accounting software. Every once in a generation, markets experience a seismic shift, where dominant incumbents are overtaken by faster, sleeker, and more innovative providers. History is full of examples like Kodak, Nokia, and Blockbuster. Now, the world of cloud-based financial management software is poised for its shake-up, with British cloud-based ERP system Sage’s dominance as the incumbent provider on the brink of disruption.
Another homegrown cloud accounting software rapidly growing in the similar category is iplicit. The London-based company is purpose-built for the UK mid-market, and has now raised £25 million in its first institutional funding round. The investment came from One Peak, a UK-based technology growth investor.
Founded in 2019, Iplicit aims to rival with Sage Intacct and hold a strong position in the cloud accounting software market valued at approximately £2 billion per year.
As per the company press release, in six years, iplicit has achieved over 100% year-on-year growth and with this fresh backing they’re poised to become a key player in the ongoing shift within the cloud financial software market. The funding aims to fast-track the company’s product development while supporting its rapid expansion in the financial management software market.
In addition to product innovation, the funds aim to fuel its market penetration and support seamless migrations for businesses frustrated with entry-level systems or legacy software.
Competition in the cloud accounting space
For years, Sage has held its position in cloud financial software in the UK, but competitors have steadily eroded its market share. NetSuite and Microsoft challenged Sage at the high-value enterprise level, while Xero disrupted Sage50 at the lower end of the market. Additionally, iplicit will compete with other software companies in the space, including QuickBooks, Xero, and others.
CEO Lyndon Stickley commented, “This investment marks a pivotal milestone in iplicit’s remarkable journey. Since our launch in 2019, we’ve achieved triple-digit revenue growth annually for six consecutive years. This new funding will enable us to sustain our momentum, continue delivering an exceptional experience for our customers, and solidify our position as the leading cloud accounting solution for the UK mid-market.”
“We are thrilled to partner with iplicit on its journey to redefine accounting software for the UK mid-market,” said Humbert de Liederkerke Beaufort, Co-founder and Managing Partner at One Peak. “iplicit’s award-winning, intelligent, powerful, and intuitive cloud accounting software, along with best-in-class customer support, makes it a standout leader in its category. This investment underscores our belief in iplicit’s ability to continue disrupting the market by delivering transformative value to customers who are looking to move away from legacy on-premises vendors or have outgrown the limited functionality provided by entry-level accounting software solutions. We look forward to supporting iplicit’s ambitious vision and next phase of explosive growth.
What we think?
Sage is best for enterprises needing advanced, multi-entity accounting or ERP solutions; QuickBooks suits small businesses and freelancers seeking an easy, affordable option; Xero excels for small to medium-sized businesses wanting a modern, collaborative platform with strong integrations; and iplicit is ideal for mid-market businesses seeking a cost-effective, cloud-native alternative to Sage Intacct.
Each platform excels in different areas, so the users choice should align with their business size, complexity, and future growth plans.
