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AMSTERDAM, Netherlands — Company funds startup Payhawk informed CNBC it’s planning mergers and acquisitions to develop its footprint within the U.S. and tackle massive gamers within the area like SAP and venture-backed corporations Brex and Ramp.
The startup mentioned it’s trying to purchase a U.S. firm or corporations on the collection A stage of their improvement, referring to early-stage startups which have already raised a big spherical of funding.
In an interview with CNBC, Hristo Borisov, Payhawk’s CEO and co-founder, mentioned he thinks his agency has a greater “product-market fit” than its rivals, which have gained multibillion-dollar valuations by handing out free company playing cards to different startups.
“We see an opportunity to have much better unit economics in this business,” Borisov informed CNBC on the Cash 20/20 convention in Amsterdam, Netherlands, this week. “We believe companies like Brex and Ramp still haven’t found strong product market fit for what this potential market is going to be.”
Payhawk is a company spend administration platform that points good playing cards for purchasers’ workers to make funds and hold observe of their bills. Decathlon and Vinted are amongst its prospects.
Within the U.S., Payhawk has partnered with American Specific below the bank card big’s Sync Business Accomplice Program. This permits it to challenge digital playing cards which earn rewards primarily based on person spending.
Consolidation the secret
Payhawk recorded enormous development within the first quarter, the corporate informed CNBC. It revealed that income climbed 84% globally year-over-year, and gross sales jumped 127% within the U.Okay. — a market that now makes up 27% of general income.
Payhawk’s development got here off the again of a big enhance in purchasers. The agency mentioned it noticed a 58% enhance in prospects year-over-year within the three months ending March, with the U.Okay., once more, a significant driver.
Now, Payhawk needs to develop its U.S. footprint in a giant method — and M&A will likely be a key to unlocking that development, in keeping with Borisov.
“Many businesses that got funded in last two or three years are now in a position where they’re looking at strategic options,” Borisov mentioned. “This is something we’re actively doing. We’re looking for companies to buy.”
“Our vision is to be able to provide a single platform that provides a homogeneous environment your corporate expense needs with a single provider,” Borisov mentioned. “There is going to be some market consolidation.”
Aim to develop into a public firm
Requested whether or not his agency was trying to elevate new enterprise funding to realize its goals, Borisov mentioned that Payhawk is at all times in fundraising conversations.
He added that its renewed development over the previous 12 months had garnered curiosity from exterior traders, after a more durable 2022 and early 2023.
“Fundraising is everyday,” he mentioned. “It’s not because we need money. The worst time to fundraise is when you need the money.”
“We’re speaking to investors daily, understanding where the market is,” Borisov added. “Partners who do believe in that vision see the same way.”
Payhawk could look to lift a brand new enterprise spherical both this 12 months or subsequent 12 months, Borisov added. The agency, backed by enterprise corporations Lightspeed, Greenoaks, and Earlybird, has raised $240 million so far.
He mentioned his final purpose is for Payhawk to develop into a publicly listed firm, although there isn’t any date but for the agency to launch a public market debut.
“Our ultimate goal is to IPO the company, this is something we’re focused on,” Borisov mentioned. “This really depends on the market conditions and market realities.”