Clariti Cloud, Government Software Provider, Raises $24.6 Million CAD from Vistara Growth

Vancouver-based Clariti Cloud, a provider of Software-as-a-Service (SaaS) solutions for government permit and license processing, has successfully secured an $18 million USD ($24.6 million CAD) investment from Vistara Growth. This significant investment is poised to fuel Clariti Cloud’s expansion and further enhance its innovative solutions for streamlining government permit and license workflows.

Clariti co-CEO Cyrus Symoom emphasized the surging demand for digital government services, noting a noticeable uptick that gained momentum during the COVID-19 pandemic and has remained steadfast ever since. Vistara echoed this sentiment, underlining the persistent need for streamlined digital solutions in government operations.

The growth financing, secured in the first quarter of 2024, aims to fuel Clariti’s expansion efforts by bolstering its go-to-market teams, fostering partnerships with system integrators, and facilitating a larger number of implementations. Vistara Growth principal Neil Kenley expressed confidence in Clariti’s transformative potential, citing the platform’s capacity to modernize legacy systems and deliver tangible benefits to both government employees and citizens. Kenley emphasized Clariti’s ability to enhance operational efficiency and user experience while simultaneously reducing the overall cost of ownership for service providers.

Clariti specializes in offering a low-code platform tailored for state, provincial, and local governments across the United States and Canada. Their platform is designed to digitize and streamline the issuance, enforcement, and management processes associated with permits and licenses, traditionally handled through paper-based methods. Over the past year, Clariti has successfully onboarded nearly 10 municipalities as customers, including prominent locations such as Bakersfield, California; Nanaimo, British Columbia; and Honolulu, Hawaii, the most recent addition to their client roster.

In May 2023, Clariti made a strategic move by acquiring Camino, a company specializing in enterprise permitting and licensing software. This acquisition allowed Clariti to enhance its service offerings by integrating Camino’s Permit Guide as an add-on to its existing platform. With the recent investment from Vistara, Clariti plans to allocate a portion of the funds towards further developing additional features and facilitating the seamless integration of Camino into its ecosystem. This strategic investment underscores Clariti’s commitment to continuously improving its solutions and expanding its capabilities to better serve its government clients.

Vistara’s investment in Clariti is sourced from its fifth private credit fund, which secured $200 million out of its $540 million target in December. Typically, Vistara allocates growth capital from this fund to enterprise SaaS companies to support various initiatives such as financing organic growth, facilitating mergers and acquisitions, or providing liquidity to shareholders.

With Fund V, Vistara aims to support approximately 18 to 24 companies across North America over a period of roughly two and a half years. The investment sizes will vary, ranging from $10 million to $30 million per company. Vistara plans to allocate around 70 percent of the fund to US-based companies and the remaining 30 percent to Canadian companies. Additionally, approximately 10 percent of the capital will be reserved for follow-on investments in existing portfolio companies.

In addition to its investment in Clariti, Vistara has made significant moves in the supply chain sector in January, investing in two US-based companies. Furthermore, the firm participated in Brim Financial’s $85-million Series C round earlier this month, indicating its active involvement across various industries and sectors.Clariti boasts a “sticky” customer base, indicating strong customer loyalty, and has ample room for expansion due to the critical nature of its solution for governments, as highlighted by Vistara in an email statement to BetaKit.

According to Intellectual Market Insights, the global GovTech market size is expected to reach $160.63 billion USD by 2031, signifying significant growth potential in the government technology sector. Canada is home to several players in this space, further underscoring the country’s prominence in GovTech innovation. Notably, HS GovTech Solutions, another government-focused software firm, was recently taken private by Banneker Partners in a deal valued at $33.3 million, demonstrating ongoing investment activity in this sector.