Expense management has long been a headache for employees and accounting departments. For many, tracking and analyzing how money is being spent on behalf of businesses is stalled in legacy software that is not well-equipped to handle the latest demands. Today, British startups building solutions to bring the process into the 21st century are announcing a major funding round to double their growth.
SoldoProviding a platform for issuing prepaid company cards to employees linked to an automated expense management system, has completed $ 180 million in funding. Soldo currently has approximately 26,000 customers, from small businesses to midsize businesses to large multinationals in 30 countries, with Mercedes-Benz, GetYourGuide, Gymshark, Bauli and Brooks being popular. It is one. Those.In addition to that, via the API it also integrates With the popular accounting packages used in today’s organizations — Option to connect NetSuite, QuickBooks, Zucchetti, Xero, and Soldo to over 50 expense management platforms including Concur and Expensify.
The Series C round is led by Singapore’s Temasek, with participation from Sunley House Capital, Advent International’s Crossover Fund, City Ventures, and former backers Axel, Battery Ventures and Dawn Capital. Silicon Valley Bank also provided a private amount of debt financing.
London-based Sold was also unclear in its latest investment statement, but for reference, when it began raising the funding in December, the company was about 278,800. It was valued at $ 10,000. PitchBook data.. At the event, Sold said the round was oversubscribed against the backdrop of the company’s strong growth. Platform spending has quadrupled from Series B. $ 61 million for the 2019 round.. (Note: Soldo’s main business is in London, but it has a small headquarters in Dublin. Electronic money license Part of the Brexit hedge in Ireland in 2019. )
More generally — and perhaps because many of us spend more time away from headquarters, or perhaps because some of us eventually go out again to meet people — expenses Management is currently receiving a lot of attention. Earlier this month, Danish Pleo, one of Soldo’s biggest competitors, Raise $ 150 Million at $ 1.7 Billion Valuation..
It’s a big market. The company says the European expense management market is $ 170 billion.
At the heart of the challenge Soldo is trying to fix is that expenses are usually a very fragmented, non-digitized business, and the employees who accumulate expenses are usually not accountants. In short, handling expenses correctly is not one of our core competencies. .. On the other hand, the costs themselves have evolved to cover all the by-products that have become easier to buy online, the way we work today, and much more. It may include subscriptions, travel and entertainment, home office office supplies, and more. Purchase on behalf of the company for marketing campaigns, online advertising, etc.
If expenses are incurred digitally, tracking is easy, but often for services or goods purchased at IRL. This causes other problems. People often forget to get a receipt or lose it before filling out a report. Or paying for things from your pocket.
In addition, expenses are incurred by corporate card or bank transfer. The former is expensive and can be difficult to manage, while the latter has its own challenges. The process is slow and often requires multiple people to settle payments.
Soldo’s approach to remedying this is, first of all, to make it easier to issue prepaid cards to employees in order to better manage their spending. Then link the card to the app. The app will create an automatic prompt that pops up every time you make a purchase with your card, informing you to get a receipt and upload it.
“Soldo’s vision is to manage total spending across the enterprise, including advertising, software subscriptions, travel and entertainment, vendor management, and payroll for all payment methods. Cards are just one of many ways companies can send money to their suppliers, “Carlo Guualandri, CEO and founder of Soldo, told TechCrunch: Email. In contrast to competitors like Pleo, he said: This is important. This is because as the more important share of corporate spending shifts to it, it becomes more valuable to customers using the spending management platform. “
Undoubtedly, the company’s growth since it was founded five years ago has hit a big speed bump in the form of Covid-19. The recovery from that is evidence that even the current market has found a place.
“The pandemic has almost completely wiped out travel and expenses as a use case for corporate spending, given that a limited number of workers have traveled and spent lunch on blockages,” Gualandri said. Mr. says. “It was very shocking to see Europe as a whole country off in the first few weeks of March last year as people stayed home due to the blockade. As a result, travel is the number one corporate card. Due to its popularity and widespread use, a significant portion of the revenue of financial services has also been lost. ”But then two things happened. He continued.
“The number of spending use cases for other companies has increased significantly. There has been a global shift to e-commerce and digitization of the finance sector. From home worker support to other business activities. , There is a clear move towards online procurement and you need a card to pay, “he said. “Also, many companies have begun distributing their products and services online, shifting most of their spending to online marketing. This is an example of a major spending that is usually paid using a card. There were certainly cases where certain spending categories declined and others grew rapidly. I realized that many pandemic-related problems have arisen and can be resolved. “
“Our experience with software and payment technology gives us deep insights and Sold is at the forefront of financial digitization,” Simon Lambert, director of Sunley House, Advent International’s crossover fund, said in a statement. I’m sure I’ll stand. ” “The company operates in a large and fast-growing market and is excited to partner with a strong management team looking to build Europe’s leading payroll and spending automation platform.”
Soldo raises $180M for its business expense management platform – TechCrunch Source link Soldo raises $180M for its business expense management platform – TechCrunch