A secondary share round headed by Sequoia Capital and Alphabet's venture fund increased the valuation of Odoo, a company competing with SAP in the corporate software space, to 5 billion euros ($5.3 billion).

With more than 80 apps on its platform, the Belgium-based startup creates open-source enterprise resource planning software that gives businesses capabilities for e-commerce, website development, accounting, human resources, and customer relationship management.

In an interview this week, Fabien Pinckaers, the CEO and co-founder of Odoo, told CNBC that his firm is "cash profitable" and is increasing its sales at a pace of 50% annually, so it doesn't need to raise any main capital. According to him, the market for enterprise resource planning is still very fragmented.

"Everyone [has] failed [in this market] because it's very complex," Pinckaers told CNBC. Accounting, inventory, websites, e-commerce, and point-of-sale are just a few of the complicated requirements that small businesses face. They need something easy and inexpensive because it's a lot and they don't have a budget.

No one was able to obtain both, he added. You have sophisticated products that work well for big businesses, like SAP. However, it's costly and complicated.

Sequoia Capital partner Andrew Reed stated that the market Odoo is targeting simply takes longer to develop than other companies since the fundamental system is so complicated and it's difficult to make it user-friendly for small enterprises and different nations.

On a Belgian farm, Pinckaers established the company's first office twenty-two years ago. At the moment, that was all he could afford. Later, when the business began to generate income, Odoo established two more offices in Belgium, where it’s technical, support, and research and development teams are based.

With 370 million euros in billings last year, Odoo is expected to surpass 650 million in 2025. By 2027, the business hopes to surpass the 1 billion-euro billings milestone. For monitoring yearly revenue performance, Odoo's primary statistic is billings, which is the total of all bills for a specific year.