Mesh Payments Gets $50M as the Spend Management Space Continues to Grow
Yet another NYC startup focused on corporate spend management has raised funding.
This time, it’s Mesh Payments, which provides a way for fast-growing companies like Snyk and Monday.com to manage their employees’ expenses while, at the same time, a way for employees themselves to better track how and where they spend money. The startup announced Tuesday it closed on a $50 million Series B led by Tiger Global, which it will use to expand its U.S. operations, roll out new products and grow its team.
Mesh’s platform manages everything from travel expenses to spend cards. It also integrates with various other tools a company might use to run its business (like QuickBooks, Slack and G Suite) and continuously scans that network in order to determine if a particular purchase is a useful one, if it overlaps with one that already exists, or if it fits into a the company’s expenditure policy. The goal, says co-founder and CEO Oded Zehavi, is to “streamline the entire payments process,” making a company’s financial operations “smoother and faster.”
As recent investments in companies like Rho (which raised $75 million just last week) and Ramp (which raised $115 million at a $1.6 billion valuation in April) would suggest, demand for better spend management platforms has been rapidly growing over the past year. As the realities of work continue to evolve in the midst of the pandemic, companies are getting more serious about the tools they use to help manage how their teams operate — posing a lucrative opportunity for investors looking to back those tools and the startups that make them.
This growth has been mirrored in Mesh specifically, which claims it has grown about 10x in just nine months. And to have the confidence of a VC powerhouse like Tiger Global — an early investor in brands like Facebook, Square and Stripe — is a strong indicator that this company is poised to be a leader in the space.
“Mesh Payments is an example of a true disruptor — a company whose innovations are transforming an already-established industry,” Tiger Global partner John Curtius said in a statement. “We’re proud to support a business that continues to deliver on its ambitions, and we look forward to helping Mesh modernize the payments space even further.”