Tipalti has hit the big time with $150 million in new funding and a valuation of $2 billion. That puts the San Mateo, California-based FinTech well into “unicorn” status, meaning it’s worth more than a $1 billion valuation.
The funding round was led Durable Capital Partners, of Chevy Chase, Maryland, with participation from Greenoaks Capital and current investor 01 Advisors, according to a press release. Tipalti said it will use the money to “accelerate its growth path. … This growth will be fueled by increasing the developer, product management, customer operations, sales and business development headcount.”
Tipalti’s focus of accounts payable (AP) automation “has an extremely large total addressable market with significant growth potential,” said Henry Ellenbogen, Durable’s founder and managing partner. “We believe that Tipalti has the potential to become a much larger company.”
“We are pleased to have the opportunity to increase our investment in Tipalti during a time in which organizations have been focused on rapidly transforming and modernizing the way they operate,” said Dick Costolo, founding partner of 01 Advisors and former chief executive officer of Twitter. “When I ran Twitter, I saw firsthand the importance and value of Tipalti in automating financial operations. Tipalti transformed our processes and opened up our expansion, growth and scalability strategies.”
“This new round of investment will allow us to further accelerate our innovation edge, as a leader in payments automation,” said Chen Amit, CEO and co-founder of Tipalti. “Tipalti is clearly needed, and this enables us to be ready for all that demand.”
The company said that “so far in 2020, Tipalti has surpassed $12 billion in annual transaction volume” and now has served over 1,000 customers. In addition, Tipalti has opened a third office in Vancouver, British Columbia, and has more than 350 employees worldwide.
A little over a year ago, Tipalti landed $76 million in a funding round led by Zeev Ventures. Also participating were Group 11 and new investors Greenspring Associates, TrueBridge Capital Partners and 01 Advisors.
“It’s well-established that accounts payable is the No. 1 most time-consuming and laborious function in finance today, and for fast-growing businesses, manual AP can impede growth,” said Oren Zeev, founding partner at Zeez, at the time.
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