the american okta has formalized the purchase agreement of arengu for a value between 10 and 20 million euros, with which it intends to consolidate itself as a strategic digital company in Spain. With this new acquisition, it not only aspires to improve the productivity, efficiency and profitability of its users, but also to increase the 70 employees that it currently has on staff in the country.
Analyzing the economic balance of Otka during the first quarter, it can be seen how until April of this year they had allocated some 22 million dollars (20 million euros) to undertake purchase operations. This supposes five times more than during the same period of 2022.
With the annexation of arengu It is committed to young capital, and to its software services for user registration and authentication administration in mobile applications and webs, it is now added the offer of the Galician company for the selling software through a periodic subscription (SaaS). The founding team of Arengu, made up of Jacobo Vidal, Sergio Regueira and Pablo Castroas well as the rest of the employees, have become part of the Okta conglomerate, maintaining their positions within the engineering team.
The Spanish startup created in 2018 will cease its activity on June 30. This was communicated to their clients through an email sent two months ago. They were also informed about the conditions surrounding the closing of their operations, although not the name of the purchasing entity. In the same way, the months previously paid by its users will be reimbursed to the users and the data of the clients available for their electronic recovery until next July 31.
The investment power of Okta
Among its potential, Okta can boast of having the capital fund of risk K Fund as one of its main partners. This entity, led by Carina Spzpilka and Inaki Arrola, led the round of half a million euros between the end of 2019 and the beginning of 2020, with Lanai and other business angels participating in it. She previously even found herself endorsed by the group Viko.
K Fund is a long-term investment. Directed by its matrix Leadwindyou have recently executed a shutdown of €140 million, maintaining investment commitments of more than 175 million euros. Now a new group of corporations such as BBVA has joined, which will manage to strengthen its position until it reaches the limit of 250 million euros.
If this figure is reached, it will become the largest investment fund for startups in Spain, going on to focus on services such as cloud, AI, blockchain or the Internet of Things. The fund arises at a key moment in which there is great competition from the ‘Series A’with large international investment funds betting on this.
Okta’s Last Deal
A few days ago the signing of a new distribution agreement between Westcon Comstor and Okta, which will make it possible to offer an effective and zero-trust security solution to the entire southern region of Europe. This allows Okta to provide its customers efficient security technologies such as Palo Alto Networks, Proofpoint, or Zscaler.
Okta went public in 2017, attracting big investors like Greylock either Andreesen Horowitz. It is currently trading three times more than in the year of its launch, with its market capitalization exceeding the 11 billion dollars.
The fiscal year 2023 closed in March with an increase in its income of around 43%, reaching 1.860 million dollars. Similarly, his net loss was around 815 million dollars. It can be concluded that these are quite positive data if one takes into account the current period of economic recession, with rising interest rates and the brake on investment.
The new startup acquired by Okta presents the singularity of building a user registration system for its SaaS service, its income depending exclusively on the number of monthly registrations. Likewise, it is annexed to other messaging companies, CRM platforms or firms specialized in authentication, such as Auth0, thus managing to offer a series of highly specialized services.
In 2021 he was part of the group of startups participating in the Okta acceleration program and combinatorinvesting at that time some $150,000 in exchange for 7% of the entity’s shares.
