CDPQ invests additional US $100M in AppDirect Capital Program

CPE News

CPE News (1.09.2024) – AppDirect, Inc. has secured USD 100 million in funding from CDPQ for AppDirect Capital Program.

Building upon the initial US $80 million investment in 2021, this new investment increases CDPQ’s total investment in AppDirect Capital Program to US $180 million.

Founded by Daniel Saks and Nicolas Desmarais, AppDirect is a leading B2B subscription commerce platform company that brings together technology providers, advisors and businesses to simplify how they buy, sell and manage technology. More than 1,000 providers, 10,000 advisors and 5 million subscribers rely on the AppDirect ecosystem of subscription marketplaces to power their innovation, growth and success.

The new investment will support innovative financing options for technology advisors through the AppDirect Capital Invest program, allowing them to access flexible capital to transform and scale their business.

San Francisco, California based AppDirect operates in Canada through a Canadian subsidiary based in Montreal, and offices in Montreal and Calgary.

AppDirect has raised US $465 million in total equity funding from CDPQ, StarVest Partners, JP Morgan, Foundry Group, and Mithril.

photo credit: AppDirect

News Release

AppDirect Secures Additional USD 100 Million Investment from CDPQ for AppDirect Capital Program

Funding provides flexible capital for technology advisors to transform and scale their business while maintaining 100% ownership

January 09, 2024 09:07 AM Eastern Standard Time

MONTREAL & SAN FRANCISCO–(BUSINESS WIRE)–AppDirect, the leading B2B subscription commerce platform in North America, today announced it has secured USD 100 million [approximately CAD 136 million]1 in funding from global investment group CDPQ. This new investment will support innovative financing options for technology advisors through the AppDirect Capital Invest program, allowing them to access flexible capital to transform and scale their business. Building upon the initial USD 80 million financing from CDPQ in 2021, this new investment increases the total program funding to USD 180 million.

In today’s dynamic channel market, every technology advisor faces the decision to stay the course, seek capital to invest back into their business or consider whether the time is right to be acquired or acquire. The AppDirect Capital Invest program supports these endeavors by combining upfront, non-restrictive capital with the power of the AppDirect Marketplace, allowing technology advisors to use the capital to scale, innovate, retain top talent, or make outside investments while maintaining 100% ownership of their business. This new funding from CDPQ enables AppDirect to work with technology advisors on flexible capital solutions to meet their unique business needs.

“AppDirect is committed to providing our technology advisors with an unfair advantage. Our Invest program is purpose-built to empower our technology advisors,” said Emanuel Bertolin, Chief Revenue Officer at AppDirect. “To keep up with today’s ever-changing market, technology merchants need fast access to capital to accelerate their growth. With AppDirect Capital, technology advisors can take advantage of innovative capital options to expand their business or invest in the future, which makes increasing access to this program all the more essential.”

“Since our initial financing in 2021, AppDirect has demonstrated their ability to accelerate the connectivity and competitiveness of today’s businesses,” said Marc Cormier, Executive Vice-President and Head of Fixed Income at CDPQ. “As part of our partnership, this repeat investment continues to facilitate the delivery of critical solutions for the digital economy, while generating stable returns for our clients.”

“AppDirect is dedicated to fueling innovation and growth for our advisor community,” said Nicolas Desmarais, Chairman and CEO at AppDirect. “CDPQ and AppDirect have an established track record of working together, and this new investment further solidifies both companies’ commitment to the growth and transformation of AppDirect channel partners and technology advisors.”

With this investment, AppDirect expects to continue bringing value to its technology advisors, like NXTSYS. “For the last five years, we’ve grown consistently between 22% to 30% year over year. Since we partnered with AppDirect Capital Invest, we jumped 50% in a single year in profit. Think about that: not 50% in revenue, but 50% in profit. Those kinds of numbers are phenomenal,” said David Wallace, Co-founder and President of NXTSYS. “With AppDirect as a partner, we knew we’d have the ability to drive growth. And once we learned that we’d maintain complete control of our business, it was a clear path forward for us.”

To learn more, please visit www.appdirect.com.

ABOUT APPDIRECT

AppDirect is a B2B subscription commerce platform company that brings together technology providers, advisors and businesses to simplify how they buy, sell and manage technology. More than 1,000 providers, 10,000 advisors and 5 million subscribers rely on the AppDirect ecosystem of subscription marketplaces to power their innovation, growth and success. For more information, visit appdirect.com or follow us on LinkedIn.

ABOUT CDPQ

At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As of June 30, 2023, CDPQ’s net assets totalled CAD 424 billion. For more information, visit cdpq.com, consult our LinkedIn or Instagram pages, or follow us on X.

CDPQ is a registered trademark owned by Caisse de dépôt et placement du Québec and licensed for use by its subsidiaries.

1 Loans are made or arranged pursuant to a California Financing Law License.
Contacts

APPDIRECT
prforappdirect@bospar.com

CDPQ
MEDIA RELATIONS TEAM
+ 1 514 847-5493
medias@cdpq.com