Brussels-based expense management startup MobileXpense has secured new funding to expand operations, according to reports.
HR Technologist said Friday (Jan. 5) that the firm secured $24 million in venture capital from Fortino Capital via its just-launched Digital Growth Fund. MobileXpense said it would use the backing to expand operations and target mid-market and large enterprise clients.
MobileXpense offers spend and expense management solutions that can integrate with commercial card platforms, corporate travel tools, ERP systems and other solutions deployed in the enterprise.
“Fortino Capital will guide us in our next steps to strengthen our commercial organization and accelerate our product development,” said Co-Founder Xavier Deleval, who started the company in 2000 with Patrick Billiet. Current clients of the firm include UCB and Porsche, reports said. Its key industry target is the travel industry.
According to Fortino partner Matthias Vandepitte, MobileXpense “helps companies in a fully automated way, allowing them to gain efficiency and reduce expense spending through digitization. We look forward to growing this company to the next level.”
Last week, another expense management company announced its own funding.
Chrome River said it raised $35 million led by Argentum Group, Bain Capital, First Analysis and Great Hill Partners. The investment will go toward international expansion, investment in customer support, and potential M&A (mergers and acquisitions) deals, reports said.
Use of automated expense management technologies is on the rise among corporations. Research released last year by another industry player, Certify, found a 4 percent reduction in the number of companies using a manual expense management system between 2016 and 2017. Still, the market is ripe for disruption, as nearly half (46 percent) of companies still rely on manual solutions, Certify said.
As more solutions emerge on the market, analysts said their ability to integrate with other platforms in the enterprise will be critical.
“Covering every aspect of the process from receipt capture and report creation to workflow automation and expense reconciliation, the key to gaining efficiencies in T&E … management is all about integration,” the report stated. “Connecting company systems and data to a central expense reporting platform reduces data entry requirements for employees, and it improves accuracy and access to analytics for accountants and system administrators.”