SAN MATEO, Calif.–(BUSINESS WIRE)–Tipalti, the leading global payables automation solution, today announced it raised $150 million at a valuation of more than $2 billion, bringing total funding raised to date to around $280 million for the B2B fintech company.
Led by Durable Capital Partners, the Series E round also includes significant investments from Greenoaks Capital and participation from current investor 01 Advisors. Tipalti will use this additional funding to double-down on its product roadmap, accelerate its growth path, extend its global presence, and increase its market leading position as the preferred solution for high-velocity companies across the globe. This growth will be fueled by increasing developer, product management, customer operations, sales, and business development headcount.
“The accounts payable automation space has an extremely large total addressable market with significant growth potential,” explained Henry Ellenbogen, Founder, Managing Partner and Chief Investment Officer of Durable Capital Partners LP. “We believe that Tipalti has the potential to become a much larger company within the Midmarket space due to its differentiated holistic platform, superior global capabilities and management team. This has resulted in leading retention and customer satisfaction.”
“We are pleased to have the opportunity to increase our investment in Tipalti during a time in which organizations have been focused on rapidly transforming and modernizing the way they operate,” said Dick Costolo, Founding Partner of 01 Advisors and former Chief Executive Officer of Twitter. “When I ran Twitter, I saw first-hand the importance and value of Tipalti in automating financial operations. Tipalti transformed our processes and opened up our expansion, growth, and scalability strategies.”
Accounts Payable is the most time-consuming function in finance. Manual AP processes not only waste time but also slow down financial reporting while increasing risk of fraud, tax, regulatory and audit penalties. According to recent research by Tipalti and Censuswide, which surveyed CFOs at medium-to-large businesses, 47% of finance organizations still spend around 520 hours per year on manual accounts payable tasks, and more than a quarter (27%) of respondents said their teams dedicate up to 80 people-hours per month on AP tasks, amounting to 1,040 hours annually. Additionally, among the forward-looking CFOs surveyed who have automated some or all of their finance processes, 17% of respondents have already successfully moved team members into more strategic roles within the organization thanks to the elimination of manual, repetitive tasks. Manual financial operations hold finance teams back by consuming resources and time that could otherwise be used to help enable their organizations to scale effectively, while supporting strategic initiatives.
Tipalti’s technology is aimed at finance leaders at high-velocity, fast-scaling companies that have historically tried to solve their financial operations challenges by increasing AP headcount alongside disparate, limited point solutions. Tipalti’s comprehensive, global payables automation solution enables its customers to automate, modernize and optimize their entire global payables operation, providing finance organizations with one highly efficient, holistic solution that will adapt to their businesses’ changing needs as they scale, and that allows finance leaders to instead focus on supporting their companies’ mission-critical initiatives.
“This new round of investment will allow us to further accelerate our innovation edge as a leader in the payables automation space and expands our solution to the larger market,”said Chen Amit, CEO and Co-founder of Tipalti. “Tipalti is clearly needed and this enables us to be ready for all that demand.”
So far in 2020, Tipalti has surpassed $12 billion in annual transaction volume and ended Q2 2020 at an over 80% growth rate relative to where the company finished in Q2 2019. The company also passed the 1,000-customer mark, opened its third office in Vancouver, B.C., Canada, and now has over 350 employees globally. Tipalti ranked on the 2020 Inc. 5000 list of fastest-growing companies in the United States for the third consecutive year, and won The SaaS Award for Best SaaS in the Business Accounting or Finance category.
Tipalti comes from the Hebrew expression for “We handled it.” Tipalti does just this by providing one comprehensive, global payables automation solution that automates all manual supplier payment processes. Its customers typically wipe out 80% of their payables workload, enabling them to focus on mission-critical initiatives, while doing more with less. Tipalti helps strengthen compliance and financial controls, avoid future AP headcount requirements, accelerate the financial close by 25%, and employ AP best practices.
Every step in the payables process—including self-service supplier management, tax compliance, fraud and regulatory controls, invoice processing and approvals, global payments execution, and payment reconciliation—is fully self-contained and backed with integrated artificial intelligence and machine learning.
Tipalti’s commitment to being customer-first has culminated in an industry-leading 98% customer retention rate with trusted brands including Amazon Twitch, Amplitude, Roku, Duolingo, Gitlab, Medium, ClassPass, Toast, Automattic, Twitter, Business Insider, GoDaddy, Zola, Boston Globe Media, Noom, Roblox, Headspace, Fiverr, Vimeo, Stack Overflow, ZipRecruiter, AppLovin, Canva, Indeed, and Foursquare.