PayEm emerges stealthily with $27M, and its answer for the expense report
Itamar Jobani, a software developer for a medical company, hated the time of month when he had the company's preferred reimbursement tool.
It was full of friction, and I felt a strong urge to improve the employee experience, Jobani shared with TechCrunch. I searched for it but couldn't find it so I built it myself.
PayEm was the result. Omer Rimoch founded it in 2019 with PayEm to serve as a platform for multinational and high-growth companies. It announced today $27 million of funding. This includes $7 million seed funding, led and managed by Pitango First and NFX with participation from LocalGlobe and Fresh Fund as well as $20,000,000 in Series A funding under Glilot+.
The technology of the company automates all aspects of the procurement, reimbursement, accounts payable, and credit card workflows. It also creates bills and sends payments to more than 200 countries in 130 currencies.
This gives finance departments a real-time view of what employees are buying and how much is being spent. Teams can submit a request, and then go through an approval process that can be tailored with purchasing codes linked to the description of the transaction. All transactions are automatically reconciled, so you don't have to spend hours going through paperwork at the end.
Jobani stated that organizations are now more democratically run with employees buying goods on behalf of the company. To address these needs, we created a platform that acts as a disbursement platform rather than a finance team.
According to Nilson Report, the global B2B payments market has a value of $120 trillion per year and is projected to grow to $200 trillion by 2028. PayEm is one of many B2B payment startups that are attracting venture capital. Last month Nium announced a $200m Series D funding with a valuation of $1 billion. Paystand secured $50 million in Series C funding from Dwolla to enable B2B payments to be cashless. Dwolla received $21 million to fund its API which allows companies to create and facilitate fast payments.
PayEm saw an acceleration in its growth in the second quarter 2021. It increased its transaction volume four times more than the quarter before and generated millions of dollars in revenue. PayEm now has hundreds of customers, including JFrog, Fiverr and Next Insurance. It also introduced new features such as the ability to create corporate card.
The company currently has 40 employees and has an office in New York. With the new funds, the company will be able to triple its workforce, with a focus on the United States and adding features and payment capabilities.
Jobani said that each person can set a budget and a timeline for purchasing the item, but accounting is still in control. Everybody now has the complete context and the correct budget line item.