TCV has a strong record on late-stage investments and a healthy list of IPOs in its portfolio
Israeli-American money transfer startup Payoneer has raised a $180 million Series E funding round, the company announced on Wednesday morning. The round was led by TCV and previous investor Susquehanna Growth Equity. TCV will also purchase shares from existing shareholders, according to Payoneer’s press release.
They boast the ability to move cash across the borders of over 200 countries, covering most of the world. Payoneer spent the last year opening new offices in Japan, India and the Philippines, the latest in an international network of offices with headquarters in New York City. Earlier this year, they acquired escrow startup Armor Payments.
“Armor is a great example of a complementary acquisition that extended our value by bridging the trust gap that exists in B2B payments,” Payoneer CEO Scott Galit told Geektime. “We were able to integrate their escrow platform into our global infrastructure to extend their value proposition and ours. This new funding gives us flexibility, both in terms of potential inorganic growth with acquisitions, and being in a strong position in case markets turn, to show the world we have superior financial strength.”
Payoneer last reeled in a $50 million funding round in August 2015 that had been reported as a Series E, which Galit explained were secondary shares rather than a full-on round. Their latest statement says they previously had raised $65 million, revising a $90 million figure we had reported in March during the Armor acquisition, possibly because some of the new financing will go to buying shares from existing investors. Previous investors include 83North, Carmel Ventures, Nyca Partners, Vintage Investment Partners, Wellington Management and Greylock Partners. Payoneer names new customers such as Tradedoubler and Linio alongside a list of longtime clients like Google, Getty Images, Airbnb, Google, Upwork and Amazon. Payoneer also announced a new partnership with Japanese e-commerce powerhouse Rakuten.
Ready to IPO?
Rumors surrounding a Payoneer IPO have been around for at least two and a half years, as far back as its 2014 Series D funding round of $25 million. TCV’s entrance might encourage those rumors.
TCV is an important name for late-stage startups. The firm has 43 IPOs in its portfolio, according to its Crunchbase profile. It recently led the mammoth $555 million round into Airbnb in September and also played a part in Spotify’s $526 million Series G financing in June 2015. Other names include Avvo, GoFundMe, Avalara, NewVoiceMedia and Brillen.de, and it had a previous investment in an Israeli-led company with Massachusetts-based Perfecto Mobile. More-established names include Expedia, Facebook, LinkedIn, GoDaddy, VICE Media and Zillow.
Susquehanna has led four of the last five rounds it participated in: Outbrain, Field Nation, Fundera and Allocadia. The fifth round was Payoneer’s $50 million round last year.
“We have been watching Payoneer’s rapid growth for several years and have appreciated their ability to execute a unique business strategy aimed at empowering SMEs and leading digital platforms around the world to reduce the friction they face sending and receiving global payments,” TCV’s would-be member on the Payoneer board, General Partner Woody Marshall, said in a statement.
Founded in 2005 by Yuval Tal and Ben Yaniv Chechik, Payoneer maintains its headquarters in New York.