After eight years of self-funding, Xensam has secured $40 million in funding to advance its artificial intelligence technology for software asset management.

Xensam, a Stockholm-based startup specializing in AI-powered software asset management for enterprises, has secured $40 million in its first external funding round led by Expedition Growth Capital from London. Founded by Oskar Fösker and Gustav Fösker eight years ago, Xensam plans to utilize the investment to further develop its AI technology, expand its workforce, and enter the U.S. market. While specific valuation details were not disclosed, the Fösker brothers remain the majority shareholders. Xensam currently serves 200 customers, including notable names like Volvo's Polestar and Northvolt, with annual recurring revenues experiencing rapid growth, although exact figures were not revealed.

The software asset management sector, also known as software expense or license management, faces significant challenges due to the complex nature of enterprise software usage, particularly with the rise of cloud computing and software-as-a-service (SaaS) models. Xensam emerged from this competitive landscape, with its founders previously employed at Snow Software, a major player in the field. The company distinguishes itself by employing AI to comprehensively analyze an organization's software usage across various environments, facilitating real-time insights into thousands of applications.

Xensam's AI technology plays a crucial role in processing vast amounts of data during the software normalization process and enhancing user interactions through a chatbot interface. The company's decision to bootstrap its operations until now was driven by a desire for financial stability and a sustainable business model. However, the infusion of VC funding reflects confidence in their established business model and growth trajectory. Expedition Growth Capital, as the lead investor, recognizes Xensam's impressive growth and critical role in enabling large enterprises to manage software usage effectively.

In summary, Xensam's latest funding round underscores its commitment to advancing AI-driven software asset management solutions, with a focus on expanding its market presence and enhancing its technology stack to meet the evolving needs of enterprise customers.