This could be an essential tool for any business that is looking to scale globally
Israeli payments automation startup Tipalti announced this week the close of their Series B funding round, bringing in $14 million in follow on capital on top of the $13 million from the first part of their Series B back in 2014.
Leading the round was Dovi Frances’s SGVC, with significant participation from Orsus according to Co-founder and CEO Chen Amit. Oren Zeev are also reported to have Wicklow Capital taken part in the company’s rounds of funding.
Already back in January with the announcement of their new fund (the aptly named SGVC II) with Russian-American billionaire investor Sergey Grishin, SGVC had begun making noise about backing Tipalti, marking them as one of the companies that they were already funding.
With offices in Palo Alto, Westlake Village, and Herzliya, Tipalti was founded in 2010 by Amit and well known angel investor Oren Zeev.
Tipalti offers their clients an end-to-end accounts payable solutions platform that takes them through the entire workflow of making payments to vendors throughout the globe. According to the company, their product “encompasses everything from payee onboarding and vetting, tax and regulatory compliance, invoice processing, payments to suppliers anywhere in the world in a wide range of payment methods and currencies, proactive supplier payment status communications, to enterprise-grade financial controls, payee and tax reporting, and finally real-time payment reconciliation.”
Customers use the platform to decrease the amount of time spent dealing with the intricacies of making payments to freelancers, vendors, and other workers, a task that can be a significant hurdle to overcome as a business works to scale up their operations. They cite clients like GoDaddy, Disqus, GoPro, Zumba, Touch of Modern, Eventbrite, Vimeo as just some of the companies that have adopted their product into their workflow.
For those non-Hebrew speakers out there, “Tipalti” means that “I took care of it”, an apt name for a company whose value to clients is removing the headache of handling payments.
Moving forward post funding, Chen tells Geektime that they are planning on expanding their their team and improving the product.
“We’re really investing in all parts of the company,” he says. “We first and foremost invest in the product and service. We’ve made some important announcements earlier this year about our invoice processing solution. We’ll have some additional exciting news about the expansion of that part of the solution shortly. We’re adding additional capabilities to address other pain points of the accounts payable team, all in line with our holistic, end-to-end approach to serving supplier payment automation. In line with that, we’re growing our sales, marketing, and operations team to support the growth we are experiencing.”
Getting the word out about their product, like for other software startups, is going to be a part of their continuing focus for the company after this round. Chen says that the challenges he hopes to address are those of growing awareness and revenues, while bringing on more quality talent, which can be rough in the super competitive tech marketplace.
Working in the global payment space comes with its own challenges, especially as conditions for working with payees in each country can vary as policies and regulation is constantly changing on the ground. Tipalti, like others in this space, has been said to have had some past difficulty in making payments to local banks in Asia, but have succeeded in finding solutions to make sure that vendors receive their payments smoothly.
As a former freelancer working with global clients, the importance of working with a system that ensures seamless payments is truly immeasurable. For these companies, finding a way to properly automate this process and keep their vendors happy is crucial to keeping their operations running, and lets them get back to growing their business.