Candex lands $45M infusion to grow its procurement management business | TechCrunch

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CandexA startup that aims to simplify procurement – specifically supplier management and payment processes – for businesses, today announced that it has raised $45 million in Series B investment led by Goldman Sachs from WiL (World Innovation Lab), Altos, NFX, Kraft. , JP Morgan, American Express and Edenred.

The deal brings Candex’s total raised to $85 million and will be used to expand the company’s presence in Asian markets and develop upcoming products for customers with “higher volume and lower fees,” CEO Jeremy Lapine told TechCrunch in an email.

“Candex has seen growth as a result of the pandemic as companies move to automate and digitize more of their business – including procurement,” Lapin said. “Candex is also insulated from the technology slowdown for some of the same reasons, plus the stability of our client base in the Global 2000 and our growing revenue model across our clients. Despite the broader economy, we believe we will continue to acquire new brands and grow our business strongly.”

It’s big talk to be sure – but maybe there’s something to it. Candex has doubled its size every year for the past four years and is on track to more than double revenue again this year, Lapin said. And Candex’s current runway is “easily over a decade old,” he added. This writer can’t argue that it seems like a healthy place to be.

“The entire investment … was made at a very significant level from the S Series A,” Lapin said. “We chose to partner with Goldman Sachs because we believe their involvement is critical to our financial stability and our focus on high-level compliance in all our operations. Goldman has been a major client of Candex for many years – giving their investors a front-row seat to trust in the value we provide.” We have added Wiel to our investment team because of their ability to help us succeed in Japan, a very important market for Candex.

So how did Candex get here?

It all started in the year It was in 2011, when Lapin and Shani Vaza-Wahrmann met through a mutual friend, they were building software to help companies in the procurement process from hiring suppliers. Lapin previously founded BountyJobs, a marketplace to connect businesses with headhunters, and Vasa-Wahrmann manages R&D on SuperDerivatives, a real-time market data platform.

In the year In 2017, Lapin and Vaza expanded the scope of the software to cover purchases from any vendor and expanded the spending category. Today, Candex covers most of the “tail costs” or unmanaged costs of products and services.

Lapin’s Candex platform—designed to work with third-party procurement and enterprise resource management software—allows businesses to pay suppliers in “minutes” instead of weeks, reducing the administrative and operational challenges that come with engaging and paying suppliers, streamlining data management, and reducing costs. Creating insights. One way Candex is speeding up the process is by employing AI models to make sure invoices are accurate, Lapin says, and to make sure transactions are being taxed appropriately in the countries where they do business.

“Buying cards or credit cards allow corporations to make purchases automatically, but large organizations go through the main payment-to-payment process that they require for their purchases,” Lapin said. “Another way for companies to solve [the procurement] The problem is business process outsourcing. But these models are based on offshore activities for low-cost countries – which are difficult to implement and can create additional compliance and accuracy issues, unlike the automation that Candex relies on.

Based in New York City, Candex’s client base of nearly 100 brands includes Sanofi, HSBC, Dell, L’Oreal and Colgate – an impressive collection to be sure. To serve this base, Candex plans to grow its 120-person team by more than 50% next year.

“The modern enterprise has an extremely global supply base, requiring compliance with a myriad of local laws and regulations, including sanctions, anti-money laundering laws and, of course, taxes. This makes tail cost management extremely difficult to do well, and can often lead to buyers and suppliers wasting time and money,” said Lapin. “Profitability is not the focus [for us] However, with such a high growth trajectory – but a circle of this size in this area shows how well we are doing on all the usual metrics. Our goal here is to build a very global and sustainable business.

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