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Mesh Payments closes at $60 million as demand for its business spend offering surges • TechCrunch


Financial management startup Mesh Payments landed $60 million in new funding, 10 months after its last raise.

Founded in Israel and now based in New York, Mesh Payments is part of a growing group of startups focused on helping businesses manage their expenses through automation.

It’s a hot, crowded space that includes Ramp, Brex, and Airbase, and more recently, TripActions and Rho, among others.

For its part, Mesh says it saw its revenue rate triple in the first half of 2022, since its increase in November 2021. The company now has more than 1,000 customers and nearly $1 billion in annualized payment volume ( TPV) passing 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 offering. But uniquely, according to Mesh co-founder and CEO Oded Zehavi, it also offers a numberless corporate card, which he describes as “the industry’s only numberless physical VISA cards with the flexibility, control and security of virtual cards”.

“We’re also offering greater integration into organizational systems that can bring insights that are not only driven by payment transactions themselves, but also provide insights beyond what you’re spending,” he said. -he adds. The company helps customers manage expenses ranging from travel and expense (T&E) to SaaS subscriptions.

Despite the growing number of competitors, Zehavi believes “the market opportunity is still significant.”

Alpha Wave led Mesh’s latest funding, a Series C that closed earlier this month and included participation from existing backers including Tiger Global, TLV Partners, Entrée Capital and Meron Capital. Its total raised to date is $123 million.

“Previous investors have used the pro rata rights they had and are adding more beyond the rights they had in this round,” Zehavi said. “We will have most of Series B in the bank, but we wanted to have enough cash to grow and scale at the current rate.”

The executive declined to share Mesh’s new assessment, saying only that it was a “significant increase”.

In his view, the company was “disciplined” when it came to valuation.

“A lot of spins these days are flat or down, especially in our space — a lot of companies have raised high multipliers to revenue generated,” Zehavi told TechCrunch in an interview. “Our activity tripled, but we kept the same multiplier, which allowed us to increase our valuation compared to the previous round.”

Asked about the actual revenue figures, the exec pointed to his business’ annual volume of $1 billion and the fact that it generates almost 2.5% in trade to give insight into an “approximate number ” where Mesh is from. an income prospect.

The company’s forte is the middle market, with clients including Monday.com, Hippo Insurance, Sezzle, Riskified and Snyk, among others.

Today, Mesh has about 150 employees, with its product and R&D functions run from Tel Aviv and sales and marketing in the United States.

The company plans to use its new capital primarily to “double” its R&D investments, as well as its go-to-market strategy.

“We’re amazed by the adoption and the opportunity the space is bringing,” Zehavi said. “And we see that the banks are still not taking any action.”

Mesh claims its clients are “5x more efficient” and their finance teams save an average of three days a month by using its offering.

Earlier this year, Mesh partnered with global payroll provider Papaya Global in an effort to “remove friction from managing employee expenses.” He is considering other similar partnerships in the future.

Rick Gerson, co-founder, president and chief investment officer of Alpha Wave Global, notes that “the best CFOs seek to get the most out of every dollar and every hour, especially during turbulent economic times.”

“The number of businesses that are ready to find new and better ways to spend less and save more is quite significant and the Mesh team is delivering a top-notch solution that is continually improving,” he said. stated in a written statement.

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