Founded in Israel and now headquartered in New York, Mesh Payments is one of a growing group of startups focused on helping companies manage their spending through automation.
It’s a hot and crowded space that includes the likes of Ramp, Brex and Airbase, and more recently TripActions and Rho, among others.
For its part, Mesh says it has seen revenue growth triple in the first half of 2022, since the November 2021 increase. The company today has more than 1,000 customers and nearly $1 billion in blocks. annual payment volume (TPV) flows through its platform.
Simply put, Mesh aims to help its customers automate and get real-time insights into their spending. Like its competitors above, it also has a corporate card service. But according to Mesh co-founder and CEO Oded Zehavi, it also offers a non-numerical corporate card, which he describes as “the industry’s only non-numeric VISA physical card with flexibility, controllability and controllability.” control and security of virtual cards”.
“We also offer more integration into organizational systems that can deliver insights that are not only driven by the payment transaction itself, but also provide insights into how much you spend, ” he added. The company helps customers manage spending from travel and expenses (T&E) to SaaS subscriptions.
Despite the increasing number of competitors, Zehavi believes that “the market opportunity is still large”.
Alpha Wave spearheaded Mesh’s latest funding, a Series C that ended earlier this month, which includes participation from existing backers, including Tiger Global, TLV Partners, Entrée Capital and Meron Capital. The total amount raised so far is $123 million.
“Investors have previously used the rights in proportion to their own and are adding to them in addition to the rights they have in this round,” Zehavi said. “We will have most of the Series B in the bank, but we want enough cash to grow and expand at the current rate.”
The CEO declined to share Mesh’s new valuation, saying only that it was a “significant round of upside.”
In his view, the company was “disciplined” when it came to pricing.
Zehavi told TechCrunch in an interview: “There are a lot of spins these days that are flat or falling circles, especially in our space – many companies have grown by a high multiplier relative to the revenue generated. created,” Zehavi told TechCrunch in an interview. “Our business has tripled, but we have kept the multiplier the same, which has allowed us to increase our valuation higher than the previous round.”
When asked about tough revenue figures, the executive pointed to his company’s annual running pace volume of $1 billion and the fact that it generates almost 2.5% of that. to give you a glimpse of “a ballpark figure” of where Mesh’s revenue perspective comes from.
The company’s appeal is the mid-range market, with clients like Monday.com, Hippo Insurance, Sezzle, Riskified and Snyk, among others.
Today, Mesh has about 150 employees, with product and R&D functions being led outside of Tel Aviv and sales and marketing in the US. It boasts a C-suite that is 60% female, including COO, CFO and CPO.
The company plans to use its new capital mainly in the direction of “doubling” its investment in R&D, as well as towards its go-to-market strategy.
“We were amazed at the acceptance and opportunity that space brings,” said Zehavi. “And we see that the banks have yet to take any action.”
Mesh claims that its customers are “5x more efficient” and as a result, their finance teams save an average of three days a month using its service.
Earlier this year, Mesh partnered with global payroll provider Papaya Global in an effort to “remove inconsistencies in employee expense management”. It has plans on other similar partnerships in the future.
Rick Gerson, co-founder, president and chief investment officer of Alpha Wave Global, notes that “the best CFOs are finding ways to get the most out of every dollar and hour, especially in times of crisis. economic instability”.
“The number of companies willing to look for new and better ways to spend less and save more is quite large and the Mesh team that offers the best solution is continuously improving,” he said in a press release. written statement.