- London-based fintech startup Payhawk has raised $112 million in fresh funding.
- The company’s new round was led by Stripe-backer Greenoaks Capital.
- It comes just seven months after its Series A, which was led by Klarna-backer QED Investors.
Payhawk, a startup that aims to simplify company expenses, has raised $112 million in fresh funding as it expands globally.
The London-based firm, which was founded in 2018, has developed a platform that can manage expenses, issue corporate cards, and also reimburse employees. Payhawk claims to have recorded massive growth in its transaction volumes since its Series A round in April as the pandemic drove more business online.
“We are in a market right now that is becoming mature from a very early stage, so we’re seeing mainstream customers opting in too,” Payhawk CEO Hristo Borisov told Insider.
“We are fighting with a lot of other companies in the market that have more resources so we can’t show them that we are slowing down at all, we raised more to have more firepower and want to be on four continents by end of next year.”
This Series B round was led by the San Francisco-based investor Greenoaks a backer of German grocery delivery startup Gorillas as well as fintechs Robinhood, Stripe, and Brex. Existing investors, including QED Investors and Earlybird Digital East are participating in the round. Payhawk has raised $136.4 million to date and is valued at $570 million.
Borisov believes that the expense management market grew in part because of distributed working forcing employees to purchase equipment to work from home but also the return of business travel.
Plenty of other companies exist in this space but Payhawk’s CEO indicated that the company’s all-in-one solution will be successful because the current market for software is fragmented, with non-tech savvy finance departments using different tools for expenses, accounts receivable, cards, and payments.
“The neo-banking experience been around for 6 years now and companies are now more comfortable with the process of buying software like this from non-traditional banks and financial institutions,” he added.
“It’s an accelerant to our market because leadership teams want to have next-level technology and their finance teams cannot bundle six or seven different software together.”
The fresh capital will go towards expanding into new key markets, the US, Canada, Australia, and Singapore with headcount expected to go from around 60 staff across the UK, Germany, Spain, and Bulgaria now to around 200 by the end of 2022.
Check out Payhawk’s pitch deck below:
Credit: Source link
