If you follow corporate card and spend management startup in the U.S., you might be familiar with Brex and Ramp. Payhawk has an all-in-one financial management solution for businesses, but with a focus on European customers. The company just raised $112 million in a Series B round.
Greenoaks is leading the round, with all existing investors participating.
Payhawk wants to replace several services that companies use to simplify their financial stack and make things work better together. Customers have their own account with a dedicated IBAN. They can use this Payhawk account to withdraw funds from their bank account.
Payhawk can be used for all things related to payment after that. Employees with a set of rules can have physical and virtual cards issued by customes. Employees don't have to pay with their personal cards.
There are no conversion fees for transactions in three different currencies. Payhawk charges an exchange rate of 1.99% for other currencies. The Payhawk startup recently introduced a cap on card payments.
Invoices are handled by Payhawk so that clients can reconcile expenses from their employees. You can sync expenses and receipts with traditional accounting software with the integrations built by the startup.
If employees had to use cash, you can use your Payhawk balance to reimburse them. Payhawk can be used to pay bills without paying transfer fees. It is also a way to keep the same interface.
Managing company cards, especially reports, bill payments, and invoices is a disconnected experience bridged by finance teams through a lot of manual work. We are building enterprise software that will automate all spend processes. Hristo Borisov said in a statement that the company's strong product background and engineering team allowed them to move quickly.
Payhawk competes with other companies in Europe. There is a big market opportunity in this space because there are a lot of players.
Payhawk has offices in London, Berlin, and Barcelona. Most of the customers are in the U.K., Germany, Spain, Belgium, the Netherlands and Luxembourg. Payhawk has seen a huge increase in transaction volume since the company's Series A round earlier this year. The company's revenue is growing rapidly as the company earns revenue on interchange fees.
The company plans to open offices in the US, the Netherlands, Australia and Singapore. It will give you an idea of the company's future plans. The company is also working on credit cards and better cross-border transactions, as well as cards that are directly tied to your Payhawk balance.
Ramp and Brex draw diverging market plans.
