Financial management startup Mesh Payments has secured $60 million in new funding, 10 months after its last raise.
Founded in Israel and now headquartered in New York, Mesh Payments is one of a growing number of startups focused on helping companies automate their spending.
It’s a hot and busy place that includes companies like Ramp, Brakes and Air Base, and more recently, TripActions and Rho, among others.
Mesh, on the other hand, He said he sees the revenue run rate triple in the first half of 2022, starting with the November 2021 increase. The company today has more than 1,000 customers and close to $1 billion in annual transaction volume (TPV) flows through the platform.
Simply put, Mesh is about helping customers automate and gain real-time insights into their spending. Like its competitors above, it also has a corporate card offering. But in a different way, according to Mesh founder and CEO Oded Zahavi, it offers a numberless corporate card, which it describes as “the industry’s only numberless physical VISA card with the flexibility, control and security of virtual cards.”
“In addition, we offer greater integration into organizational systems, which can bring insights that are not only driven by the payment transactions themselves, but also provide additional insights into how much they spend,” he said. The company helps clients manage their spend, from travel and expense (T&E) to SaaS subscriptions.
Despite the growing number of competitors, Zahavi believes “the market opportunity is still huge.”
Alpha Wave led Machin’s latest financing, which closed earlier this month in a Series C round that included participation from existing backers including Tiger Global, TLV Partners, Entry Capital and Meron Capital. The total raised so far is $123 million.
“Previous investors used their pro rata rights, and they’re increasing their rights as part of this round,” Zahavi said. “We will have most of the Series B in the bank, but we want to have enough money to grow and scale at our current size.”
The executive declined to share Machin’s new valuation, saying only that it had a “significant round.”
In his view, the company was “disciplined” regarding the evaluation.
“A lot of rounds these days are flat or down rounds, especially in our space — a lot of companies are raised at high multiples compared to the revenue they’re generating,” Zahavi told TechCrunch in an interview. “Our business has tripled, but we’ve kept the same multiplier, which allowed us to raise the valuation above the previous round.”
When asked about solid revenue figures, the executive pointed to his company’s annual turnover of $1 billion, and that he’s generating roughly 2.5% of that as a “ballpark number” to see where Mesh is coming from. Income view.
The company’s sweet spot is the midmarket, with clients like Monday.com, Hippo Insurance, Sezzle, Riskified and Snyk, among others.
Today, Mesh has approximately 150 employees, with production and R&D operations directed from Tel Aviv and sales and marketing in the US, while running a C-suite that is 60% female, including the COO, CFO and CPO.
The company plans to use the new capital mostly on its R&D investment to “double down” as well as its go-to-market strategy.
“We’ve been surprised by the adoption and opportunity the space brings,” Zahavi said. “And we have seen that the banks are still not taking any action.”
Mesh says its customers are “5x more efficient” and that their finance teams save an average of three days a month using its offering.
Earlier this year, Mesh partnered with global payroll provider Papaya Global to “remove the confusion around labor cost management.” He plans on other similar partnerships in the future.
“The best CFOs are looking to get the most out of every dollar and hour, especially in times of economic turmoil,” said Rick Gerson, co-founder, chairman and chief investment officer of Alpha Wave Global.
“The number of companies open to finding new and better ways to save less and save more is huge, and the Mesh team will deliver a best-in-class solution that continues to evolve,” he said in a written statement.
