After three fundraisers, Spendesk announces a new funding round of $ 18 million. Thanks to this funding, the startup specializing in the decentralization of payments is seeking to strengthen itself in France, the United Kingdom, Germany and the United States.
Released in 2016 from the eFounders studio , Spendesk has accustomed us to its annual fundraiser. Despite the Covid-19, the startup specializing in the decentralization of payments, invoices and expense reports, is no exception. A little over a year after the closing of its $ 38 million Series B, it announces its $ 18 million extension, bringing its total funding to $ 68.5 million. Its latest operation, led by the American fund Eight Roads Ventures, which has already acquired stakes in Alibaba, Made.com, Tediber or even Treatwell, aims to finance its strengthening abroad, particularly in London, Berlin and San Francisco. Spendesk takes the opportunity to announce the appointment of Joseph Smith (ex-Dixa, Qubit and Hootsuite) as CRO.
A new levy to bounce back from the Covid-19
Despite the confinement, Spendesk appears to have held the shock and even managed to continue growing. If the company did not ” experience the same explosion as Zoom” , it still found its use during the crisis, summarizes Rodolphe Ardant, co-founder and CEO. ” We realized that our solution met a need for decentralization and digitization of financial services which was accelerated by the pandemic” , continues the entrepreneur.. Result: revenues from its subscriptions have doubled compared to last year announces the leader without giving a figure. The company has also grown from 100 people in September 2019 to 220 today and is counting on 300 employees by June 2021.
Convinced of its future development and growth, the startup has chosen to strengthen its financial strength. “ This funding was not initially planned, but the Covid and the confinement prompted us to think about our post-crisis development,” says the CEO of the company. But to avoid wasting too much time in carrying out a new round, the founders (Rodolphe Ardant, Jordane Guily and Guilhem Bellion) preferred to turn to the Eight Roads fund, which they know well . ” He phas international expertise and is really aimed at companies that want to change scale and they have this dual fintech and B2B Saas hat. They are very familiar with credit issues and have the right relationships to enable us to accelerate our international deployment ”, explains Rodolphe Ardant.
International, an ambition for a long time
If the first Spendesk market remains France, startup ” is’re still t developed from an international perspective,” says the CEO. Its series B fundraising of $ 38 million has also enabled it to open three new offices in London, Berlin and San Francisco. While it was also eyeing Spain, it nevertheless chose to limit its ambitions for the moment, preferring to strengthen its positioning in these four national markets. “ During the next 12 months, we will devote 80% of our activity to strengthening our positioning on these main ones ” . The playground is already appetizing ” since it includes a breeding ground for 80,000 companies with between 15 and 250 employees.”. For comparison, the startup currently has 2,500 as clients.
Managing the crisis as CFO, the example of Spendesk
When Spendesk to be well integrated in these countries, ” el the scaler can then more easily and accelerate its deployment in Europe and abroad” .
To ensure that Brexit does not fail it, it has already taken steps by establishing partnerships to continue to operate financially on British soil. ” No us also are speeding up the establishment of our subsidiary” to avoid the obsolescence of existing contracts.
The risk of the US election result
Among Spendesk’s targets, it’s hard to miss the United States. After several months of R&D to calibrate a new product and the long and tedious recruitment of a sales team on site, the startup finally opened a branch in San Francisco last September. If the first months went rather well according to Jérémy Goillot, Head of Growth , the Covid associated with the American elections have frozen corporate investments. Despite everything, the CEO remains confident and ensures that the deployment schedule is kept. ” We were not in a logic of acceleration or development, we are still in a prospective period, we are trying to learn what the rules are to operate in the United States, what customers expect, etc…” . The impact would therefore be less. To obtain these initial returns, Spendesk can already count on the 300 American subsidiaries of its customers.
The American elections could nevertheless cool the American ambitions of the startup. “We will have to wait until November 3, 2020 (date of the American elections) to imagine the future,” says Jérémy Goillot. Rodolphe Ardant also acknowledges that the company’s strategy in the United States will depend ” on government restrictions and the closing of borders which would make trade very difficult” in this country. In the meantime, the American team awaits the outcome of a critical economic and health situation in complete uncertainty.
Despite these doubts, Rodolphe Ardant and his associates continue to recruit sales representatives, customer managers and engineers in order to develop new tools and find future customers.