Tipalti, once a fintech unicorn, is now approaching decacorn status.
A decacorn is defined as a private equity firm worth more than $10.000 billion.
The company, which automates accounts payable for midsize businesses, announced today that it has raised $270 million in a funding round F Series which has resulted in a valuation of the company at 8.300 million dollars. That's over a 2 billion valuation at the time of his Round E Series 150 million the previous year.
In a nutshell, Tipalti uses artificial intelligence to help companies manage suppliers, invoices, purchase orders, tax compliance, payments and billing, and other accounting services from a single cloud platform. It claims to reduce the operational burden on businesses by 80% by giving them the ability to pay partners and vendors in "minutes."
The company focuses on mid-sized SMEs, which are defined as those with revenues between $10 million and $XNUMX billion. Only in the United States do medium-sized companies account for more than a third of employment y about 40 percent of GDP. Another major player in space, bill.com, focuses more on SMEs. That company went public in December 2019 and is currently trading at $254,76, significantly higher than the $22 per share its shares valued at the time of its IPO.
"I think the market has an adequate perception of the size of the market opportunity that we face." CEO and co-founder Chen Amit. "Our results in the last 12 months have increased because of that new insight."
G-Squared led the last round of Tipalti, which also included "significant" investments from new backers Marshall Wace, as well as funds and accounts managed by Counterpoint Global (Morgan Stanley), in addition to current investors Zeev Ventures, Durable Capital Partners, 01 Advisors and others. The financing brings the company's total raised since its inception in 2010 to $550 million.
The new appraisal of Tipalti, more than four times the previous one, catapults the startup based in San Mateo, California, among the most valuable private fintech companies in the world.
What have you done to cause this jump?
For one thing, it currently processes over $30 billion in total annual payment volume, growing 120% year over year. It also recently passed the 2.000 customer target. Those clients include Roblox, Amazon Twitch, GoDaddy, Roku, WordPress.com, and ZipRecruiter, among others.
At the time of his rise E Series from the previous year, Tipalti its transaction volume increased to 12 billion dollars, 80% more than the previous year. In his portfolio he had about 1.000 clients.
This year Tipalti opened new offices in London, Plano, Texas and Toronto Ontario, and has grown to 720 employees worldwide from 350 last year. It also released "enhanced capabilities," including the Procurement and Integration of Cloud Procurement Solution Provider Approve.com, enhanced multi-entity APIs, virtual cards, mobile devices, and new integrations with complementary fintech providers, such as expense management companies.
“This latest investment will allow Tipalti adding new capabilities to our product lines in the next 18 months than we have done in the last 10 years combined,” Amit said. “The broader financial operations challenge for broad-growth and mid-market companies encompasses many issues and challenges that they have, and that creates more opportunities for us to monetize.”
Tipalti it will also use its new capital in part on client operations, as well as towards global expansion. It also plans to hire across all of its product, engineering, and sales and marketing teams.
"We hope to double our go-to-market team next year," Amit said. “The potential market we have today is around 700.000 companies with very little penetration between us and the other few players in the market. That's why we want to reach more of these potentials."
Larry Aschebrook, founder and managing partner of G Squared, said in a written statement that his firm believes that "Tipalti it is reshaping the way companies manage their financial operations.”
“Their strong growth and industry-wide retention rates are evidence that they are on a mission to solve important challenges for their clients,” added Aschebrook. “We see a huge opportunity in the target market that is currently very underserved.”
In your opinion, Tipalti has approached a complex and often low-tech set of essential business processes and "meticulously designed a solution with simplicity at the core of its offering."
