Israeli Unicorn Tipalti, which recently announced hitting a $2 billion valuation, acquired Approve.com, an Israeli startup just 8 months off of its Seed round, in what looks to be a nice return for their investors.
From raising $5M to a nearly $40M acquisition
Tipalti, an automated platform for global and local payments, has acquired Approve.com - founded 2 years ago and backed by Aleph - to implement its system, which enables businesses to rapidly deploy a proper purchase order process.
The companies have yet to release the acquisitions full details, but estimates put the deal around $40 million, in spite of Approve only raising $5 million. Approve CEO and co-founder Bar Winkler said during the Seed round that the company’s valuation was between $15-$20 million - and it seems that 8 months was enough to double it. On Tipalti’s side, the Israeli Unicorn noted that Approve’s system will help upgrade its support and service to small businesses. Additionally, Approve.com’s 19 employees will join Tipalti’s 480 employee global roster.
Tipalti CEO Amit Chen said that “with the acquisition of Approve.com, we will help finance organizations at growth-oriented companies scale more efficiently, focus more of their resources on driving company strategy, improve company-wide spend visibility, and greatly strengthen their spend and financial controls.”
“Our solutions are complementary, and both have been designed with the same balanced values of simplicity, a great user experience, and intelligent capabilities in mind. Together, we will help mid-market companies optimize and scale their financial operational processes end-to-end,” said Approve.com CEO and Co-founder Bar Winkler.