Satish K Palvai, cofounder of Xactly, is betting on a market, which is set to grow beyond $8.2 billion by 2010 as forecast by Ventana Research. Xactly, a provider of on-demand sales performance management has raised $30 million in additional capital to fund continued business growth and capitalize on its leadership role in the emerging Sales Performance Management (SPM) space.

Building upon its current leadership in on-demand Sales Compensation Management (SCM) software, Xactly was the first to define and deliver upon the much larger, overarching market for on-demand Sales Performance Management (SPM) – forecast to reach $8.2 billion by 2010. The year 2007 was a breakout year for Xactly in terms of business performance, with 700 percent year-over-year revenue growth, 200 percent more new customers signed, and a 300 percent increase in the company’s customer subscriber base. The company recently closed its Series ‘D’ round of financing, bringing total funding to $57 million.

Founded in 2005, Xactly’s on-demand suite of Sales Performance Management applications is a horizontal solution, applicable for companies – from SMBs to large enterprises – across all industries outside of government and education. The company has witnessed an uptake among companies in media and entertainment, technology, financial services, manufacturing and life sciences.

Xactly will use the new funds to expand its footprint in North America and EMEA, and further invest in sales and marketing This will enable the company to deliver key new products as outlined in the 18-month product roadmap, culminating in the market’s most comprehensive suite of on-demand sales performance management solutions available from a single vendor. However, Palvai considers the spreadsheet-based sales compensation programs, which most companies develop internally, the biggest competitor.

Headquartered in San Jose with 130 employees, Xactly has bagged 2008 CODiE Award in the category of Best Financial Software Solution.