Now that the world seems to have settled in the longer term to work in a much more distributed fashion in the wake of Covid-19, companies are taking the use of tools to manage the functioning of their teams more seriously as part of the process. of these new parameters. Today, a startup that takes up this challenge and its specific link with expenses is announcing funding.
Mesh Payments, which provides a platform for businesses to monitor and manage employee spending, and for employees themselves to better track and manage how and where they spend money, raised $ 50 million. It plans to use the funding to continue to expand the functionality of its platform, as well as to continue business development. It has experienced a growth boom in the past nine months, multiplying tenfold during that time, he said.
The round, a Series B, is led by the very prolific Tiger Global, also with participation from Entry Capital and Falcon Edge Capital, as well as former backers TLV Partners and Meron Capital. Mesh Payments – founded in Israel and now based in New York – had already raised $ 13 million, and it is not disclosing valuation.
Currently, the company’s tools cover areas such as travel expenses, expense cards, and other forms of expense management, but potentially the most interesting aspect of how Mesh works is in its name.
Mesh Payments’ platform integrates with various other software and applications that a business can use to run their business, and continually analyzes this network to determine if a particular purchase is worthwhile or if it may overlap with something that exists. already. , not to say inconsistent with other aspects of a company’s specific spending policy.
“We start from the idea that there is a different context for different types of expenses,” said Oded Zehavi, co-founder and CEO of Mesh Payments, in an interview. “The process of a software journey differs, so we started to create models for these unique cases. “
Today, the platform integrates with Google’s QuickBooks, Slack, Netsuite, Xero, G Suite, and more. “We are adding more connectors to connect organizations’ service data in the cloud to be exposed to more business behaviors,” he said. “The combination of this data and the intelligence we’ve engineered more superior is what sets us apart. “
So, for example, if an employee suddenly decides to set up an iCloud storage subscription, Mesh will scan the network to determine if this matches company policy, and also attempt to see if the organization already has an account. with other cloud storage. business. If any of these issues raise a flag, the purchase is also flagged.
Employees receive notifications from them, and therefore from expense managers on the finance team. It’s up to the finance team to decide how strict they want the policy to be: whether purchases are blocked, or subsequently rejected, or issued with a warning / alert.
Naturally, the system requires a substantial ramp-up on the part of the customers: they must already be working in a sufficiently digital way for the Mesh modeling to work to the best of its ability. It should come as no surprise then that the current client list is full of tech companies, which are already working in the cloud and therefore represent an easy way to work with Mesh: Monday.com, Hippo Insurance, Sezdle, Riskified and Snyk are listed on the list.
As recent fundraisers for Pleo (which raised a valuation of $ 4.7 billion last week) and Soldo (which raised $ 180 million in July) show, there is currently a huge appetite on the market. market for better and more up-to-date tools to manage spending, both at a time when employees may need to independently spend more than before because of the way they work, but also because companies are simply looking to become smarter and have more control over the systems and financial management they have in place.
Mesh’s focus on large enterprises gives it a very broad funnel, targeting an area that has been particularly prevalent with tools legacy from companies like SAP (although to be fair they all focus on improving user experience and on the increased use of modern technology).
Nonetheless, it’s a huge opportunity that is likely to remain, as are at least some of our newly distributed working practices.
“Mesh Payments is an example of a true disruptor – a company whose innovations are transforming an already established industry,” John Curtius, a partner at Tiger Global who led the investment, said in a statement. “We are proud to support a company that continues to achieve its ambitions, and we look forward to helping Mesh modernize the payments space even further.