Fabien Pinckaers: Odoo's meteoric rise to 4 billion euros

Fabien Pinckaers

In 2002, Fabien Pinckaers launched the company Odooinitially called 'Tiny', to realize his vision of creating open-source business software and now to assets of €2,200,000,000. Open-source means that the software is made available free of charge. The decisive breakthrough came after a decade, when the company adopted a business model of offering a basic open-source supplemented by paid premium applications. This was no easy task, given the open-source community's attachment to its business model. Nevertheless, Odoo has successfully made the transition from a start-up in search of survival to a profitable, investment-independent company. Today, while continuing to invest in open-source functionalities, around 20% of Odoo products are paid for.

Pinckaers describes his product as an integrated software package designed to for SMEs, a niche not previously served. Unlike complex, expensive ERP solutions that take years to implement, Odoo offers a simple, affordable alternative. This is in contrast to the giant hands such as SAP and Microsoft, who have tried to get involved in this sector without major success.

To grow, Odoo favors internal promotion rather than external hiring of managers, which is contrary to the usual practices of start-ups. Pinckaers stresses the importance of cultivating leaders rather than hiring managers. Odoo seeks to promote the best employees. Their main challenge is to recruit enough developers to support their rapid growth. For example, for the current year, Odoo plans to recruit at least 160 programmerswhile the nearest university trains only 80 per year.

As far as managers are concerned, Pinckaers points out that at Odoo, promotion to a managerial role is the result of exceptional skill, and these leaders serve the team as trainers and advisors, rather than mere supervisors.

In 2023, Odoo became even stronger financially when US investment firm General Atlantic acquired a 2.2% stake from Noshaq, a public investor. Liège. Pinckaers has not sold its shares, now a majority interest in 55% 2.2 billion euros. At that time, the company's value was estimated at to 4 billion euros. Odoo's performance has followed an upward trajectory, with nearly 11 million customers in 2023, coming from just over 4.5 million in 2019.

Revenues have also shown marked growth, rising from 148 million euros in 2021 to 272 million in 2022, representing an increase of almost 85%. Odoo's customers include companies as varied as Eggo, Marcolini, Jost and Lucien, as well as well-known players such as Carrefour, the European Commission, Danone and Sodexo. Odoo solutions are also used by Proximus, KPMG and the independent mutual fund Helan.

Summary based on data as of June 26, 2023.