Odoo, a Belgium-based startup specializing in open-source enterprise resource planning (ERP) software, has raised €500 million (approximately $527 million) in a secondary investment round, increasing its valuation to €5 billion ($5.3 billion).

This funding round was led by CapitalG, Alphabet's venture fund, and Sequoia Capital, with participation from other notable investors including BlackRock and Mubadala Investment Company.

Odoo has not raised primary capital since 2014, when it secured $10 million in a Series B round, and this latest valuation marks a significant increase from its previous valuation of €3.2 billion.

CEO Fabien Pinckaers highlighted that Odoo is cash profitable and experiencing a remarkable growth rate of 50% year-over-year, indicating a strong position in the fragmented ERP market.

The company anticipates exceeding €650 million ($685 million) in billings within the next 12 months, with a long-term goal of reaching €1 billion ($1.05 billion) by 2027.

Odoo plans to utilize the new funding to accelerate research and development, particularly to enhance its offerings in response to emerging trends in cloud computing and artificial intelligence.

Founded in April 2002, Odoo has evolved from an open-source project into a comprehensive business software provider, offering over 80 integrated applications for small and mid-sized enterprises.

Approximately 80% of Odoo's revenue is generated from free-to-access open-source software, with the remaining 20% coming from paid 'Odoo Enterprise' products that provide additional features.

The company serves over 13 million users globally and is adding more than 7,000 new clients each month, showcasing its rapid growth and market demand.

Odoo's software suite includes applications for various business functions such as accounting, customer relationship management, and e-commerce, positioning it as a competitor to established firms like SAP.

With plans to open five new subsidiaries in Europe, Latin America, and Asia-Pacific over the next three years, Odoo aims to enhance its global presence and focus on innovation.

Despite its impressive valuation and growth, Pinckaers has no immediate plans for an IPO, preferring to maintain the company's private status for long-term investment strategies.