According to Sifted, the Paris-based customer relationship management (CRM) scaleup Brevo has raised a massive €500 million in a secondary share sale, pushing its valuation over €1 billion and making it Europe’s newest unicorn. The funding was co-led by US investor General Atlantic and UK-based Oakley Capital, who now each hold a 25% stake. Founder Armand Thiberge stated the move was to create liquidity for early backers, with French VC Partech fully exiting and others like Bpifrance partially selling down. The company, which launched in 2012, is also profitable, expecting to report €200 million in annual recurring revenue (ARR) and over €30 million in EBITDA for 2025. With over 600,000 clients—70% in Europe—Brevo also secured undisclosed debt funding to fuel mergers and acquisitions, with plans to invest heavily in the US market.
The Secondary Market Play
Here’s the thing: raising €500 million in a secondary sale is a huge signal. This isn’t fresh capital to keep the lights on. It’s a liquidity event for early investors and employees in a market where IPOs are basically frozen. Thiberge said it straight: “It’s easier to find €500m in private equity than on public markets” right now. So this deal acts as a pseudo-exit, rewarding the risk taken by funds like Partech, while bringing in massive, patient growth capital from firms like General Atlantic. It’s a clever workaround. It keeps Brevo private, avoids the volatility and scrutiny of public markets today, and sets the stage for a potential IPO in 4-7 years. And their commitment to list in Europe, for “digital sovereignty” reasons, is a notable political statement in tech.
The SMB CRM Battlefield
Brevo’s play is all about serving small and medium businesses with a suite that handles email, SMS, marketing automation, and sales tools. It’s a crowded space, famously dominated by giants like Salesforce and HubSpot. Brevo’s edge? It’s built for the European market first, which is a mosaic of languages, regulations, and business cultures. But that’s also its growth challenge. The US represents 50% of the global CRM market but only 15% of Brevo’s current customers. So their plan to invest €100 million there over four years is a direct assault on the home turf of their biggest competitors. They’ll need that war chest for marketing and the M&A Thiberge mentioned. Acquiring a US-based player could be a faster path to credibility and customers than grinding it out alone.
Profitability and the Path to €1B ARR
Now, let’s not gloss over the profitability. In today’s “growth at all costs” SaaS world, reporting a second year of profit with €30M+ EBITDA is seriously impressive. It gives them options. That profit, combined with the new debt facility, means their M&A strategy isn’t just theoretical—they can actually go shopping. The goal is audacious: hit €1 billion in ARR by 2030, from €200 million today. That’s a serious ramp. To get there, they’ll need to triple their headcount to 3,000 and successfully integrate those planned acquisitions. The bet is that the combined firepower of their profitable core business and strategic buys can carve out a lasting number-two or number-three spot in the global SMB CRM race. Can they do it? The new unicorn status and heavyweight backers certainly give them a fighting chance.
