Icertis is enhancing its AI capabilities, developing an agentic AI platform and integrating AI into enterprise workflows. While eyeing an IPO, its focus remains on execution, partnerships, and acquisitions amid rising competition in contract management.
Icertis, which provides a digital platform for businesses to automate and streamline different stages of contract management, is stepping up its artificial intelligence play.
The firm has been working on an agentic AI platform for the past six months and is partnering with companies and new-age AI startups to integrate them in enterprise workflows, cofounder and chief technology officer Monish Darda said.
Since the advent of ChatGPT in November 2022, there has been a significant shift in the way businesses are run. To tap into this changing landscape, Icertis has been investing significantly in AI including AI agents. It is also integrating AI within the firm.
Darda, who founded the firm along with Samir Boda in 2009, said while they are considering an initial public offering, the focus currently is on execution. It is waiting for right market conditions and adapting to the changing technological landscape, he said.
Icertis in 2022 hired a chief financial officer, Rajat Bahri, who is experienced in taking companies through IPO.
Icertis has raised total funding of $447 million and was valued at $5 billion after the last fundraising round in 2022. It reported $250 million in annual recurring revenue in fiscal 2024.
When it comes to agentic workflow, Darda said it is working with customers to figure out the use cases where AI agents can act autonomously and take action. For instance, this could be paying an invoice automatically or making processes and decision-making automatic in high volume and low-risk tasks in the contracting business.
"The conversation has changed from how contracting can be better with GenAI or agents, to how can I actually implement GenAI strategy with contracts," Darda said. According to him, this change accelerated at the back of reasoning models.
Competition, challenges
Icertis' key competitors include DocuSign, IronClad and Sirion Labs. Recent times have also seen new-age startups in the contract management area attracting large funding, including SpotDraft ($54 million in Series B) and LinkSquares ($100 million in Series C).
According to Darda, the biggest challenge with the technological shift isn't competition from startups, but execution and deciding what kind of partnerships are essential.
Unlike startups, enterprises have a lot of interdependencies, and it requires the entire workflow to be there for the AI to act, Darda said. "We have a strong enterprise platform and are incorporating agentic workflows on our platform," he said. In addition, the company is also partnering with Microsoft, SAP and AI startups like Harvey, even as competition heats up in the contract management space.
It is also looking to acquire companies that have strong domain expertise in the areas of procurement, sales and GenAI.
