Managing expenses has long been a headache for employees and accounting departments. For many, tracking and analyzing how money is spent on behalf of businesses is stuck 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.
BalanceProvide employee prepaid corporate card issuance platform linked to automated expense management system, achieved $ 180 million funding. Soldo currently has around 26,000 customers, from small and medium businesses to large multinationals in 30 countries, with Mercedes-Benz, GetYourGuide, Gymshark, Bauli and Brooks being popular. It’s a. Those.In addition to that, through the API, it also integrates With popular accounting packages used in organizations today – Ability to connect NetSuite, QuickBooks, Zucchetti, Xero and Soldo to over 50 expense management platforms, including Concur and Expensify.
The Series C cycle is led by Temasek of Singapore, 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 company Sold was also unclear in its latest investment statement, but for reference, when it started raising funds in December, the company had around 278,800 people. It was valued at $ 10,000. PitchBook Data.. At the event, Sold said the tour was oversubscribed in the context of the company’s strong growth. Platform spending has quadrupled compared to the B-Series. $ 61 million for the 2019 round.. (Note: Soldo’s main business is in London, but it has a small head office in Dublin. Electronic Money License Part of the Brexit coverage in Ireland in 2019.)
More generally – and maybe because a lot of us spend more time away from headquarters, or maybe because some of us end up going out to meet people – the expense Management currently receives a lot of money. Warning. Earlier this month, Danish Pleo, one of Soldo’s biggest competitors, Raise $ 150 million at a valuation of $ 1.7 billion..
It’s a big market. The company claims the European expense management market is $ 170 billion.
At the heart of the challenge Soldo is trying to solve, spending is typically a very fragmented, undigitalized business, and the employees who rack up the spending aren’t usually accountants. In short, properly managing expenses is not one of our key skills. .. 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. This can include memberships, travel and entertainment, home office supplies, etc. 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 from IRL. This causes other problems. People often forget to get a receipt or lose it before filling out a report. Or pay for things out of pocket.
In addition, expenses are incurred by company 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 several people to settle the payments.
Soldo’s approach to remedy this is first of all to facilitate the issuance of prepaid cards to employees in order to better manage their expenses. Then link the card to the application. The app will create an automatic prompt that will appear every time you make a purchase with your card, notifying you to get a receipt and download it.
“Soldo’s vision is to manage total business expenses, including advertising, software subscriptions, travel and entertainment, vendor management and payroll for all payment methods. Cards are just one of the many ways businesses can send money to their vendors, ”Email TechCrunch told TechCrunch. Carlo Guualandri, CEO and founder of Soldo. Unlike competitors like Pleo, he said: It’s important. This is because as the largest share of business expenses is transferred there, it becomes more valuable to customers using the expense management platform. “
Without a doubt, the growth of the company since its inception five years ago has seen a big slowdown in the form of Covid-19. The resulting recovery is proof that even the current market has found its place.
“The pandemic has almost completely wiped out travel and spending as a use case for corporate spending, given that a limited number of workers have traveled and had lunch on blockades,” Gualandri said. said sir. “It was very shocking to see Europe as a whole in the first weeks of March last year as people stayed at home due to the blockade. As a result, the trip is the number one company card. a. Due to its popularity and widespread use, a significant portion of financial services revenue was also lost. “But then two things happened. He continued.
“The number of spend use cases for other businesses has grown dramatically. There has been a global transition to e-commerce and the digitization of the financial sector. From supporting homeworkers to other business activities. There is a definite shift towards online shopping and you need a card to pay, ”he said. “In addition, many companies have started to distribute their products and services online, shifting most of their spending to online marketing. This is an example of a large expense that is usually paid for using a card. There have certainly been instances where some categories of spending have decreased and others have increased rapidly. I realized that many issues related to the pandemic have arisen and can be resolved. “
“Our experience with software and payment technologies gives us in-depth insight and Sold is at the forefront of financial digitization,” said Simon Lambert, director of Sunley House, Advent International’s cross-fund, in a statement. I’m sure I’ll stay on my feet. “The company operates in a large and rapidly growing market and is excited to join forces with a strong management team looking to create the leading payroll and expense automation platform in Europe. “
Soldo raises $ 180 million for its professional expense management platform – TechCrunch Source link Soldo raises $ 180 million for its professional expense management platform – TechCrunch