Insight Partners leads $ 34 million funding round in Singapore-based fintech Spenmo – TechCrunch
Spenmo started out as an expense management platform before realizing that expenses “are just a tiny sliver” of a company’s debt, founder and CEO Mohandass Kalaichelvan told TechCrunch. Finance teams also have to manage vendor payments, vendor payments, payroll, and reconcile bank accounts, often in different countries, resulting in an overwhelming workload. Spenmo was created to centralize workflows for accounts payable for SMEs. The Singapore-based firm announced today that it has raised a $ 34 million Series A led by Insight Partners, the New York-based investment firm known for its ScaleUp program.
Spenmo says this is one of the biggest Series A rounds ever lifted by a Singaporean startup. It included participation from Lee Fixel’s investment firm Addition, Salesforce Ventures, Alpha JWC, Global Founders’ Capital, Broadhaven, Operator Partners and Commerce Ventures, as well as angels like Plaid co-founder William Hockey; Reuben Lai, Senior Managing Director of Grab Financial Group; and director of Stripe Indonesia Ongki Kurniawan.
AY Combinator alum, Spenmo was launched last year and has now raised a total of $ 36 million.
“We stopped presenting ourselves as expense management and focused on creating a payments experience because we want to be at the heart of everything a business pays,” Mohandass Kalaichelvan told TechCrunch. “Right now, companies don’t have that one source of truth. They’re using an expense management tool, which is a silo, something else for vendor payments, something else for payroll, and all those bank accounts that they have to manage. We quickly realized that this gave us the opportunity to bring all of these things together in one place and reduce the silos that teams have to manage.
Since one of Spenmo’s products is the Company Card, it is often compared to Brex or Aspire. But Mohandass Kalaichelvan said the company had no desire to build a neobank. Instead, its goal is to help businesses manage the bank accounts they already have. Spenmo also doesn’t want to replace accounting software and, in fact, it integrates with solutions like Xero and Quickbooks.
About 80% of Spenmo’s customers make cross-border payments and have multiple bank accounts in Southeast Asia. If a business has 500 invoices and bank accounts in Singapore and Indonesia, Spenmo helps their finance team manage which ones to send payments from.
“One thing we found about South East Asia is that the cross border is very important. Your workforce is remote, so you have to send wages abroad very early on, ”said Mohandass Kalaichelvan. “Second, your supply chain is also international, so there are a lot of cross-border businesses and services that you want to consider. Spenmo can integrate with FX portfolios in addition to bank accounts, so clients can find the best rates.
Along with Singapore, Spenmo is also currently focusing on Vietnam and Indonesia, as these two countries have a growing number of small and medium-sized businesses and many payment gateways, making debt management even more complicated.
Spenmo clients typically handle between 500 and 9,000 debts per month. “This space is good for us because we don’t want to be anchored around things like the total dollar amount of debt,” said Mohandass Kalaichelvan. “If it’s just a million dollar bill, someone can do it themselves. But if the million dollars is 1,000 payments from different freelancers and they have to manually pull all of that data to schedule the payments, Spenmo will be of great help to them.
Insight Partners Director Rebecca Liu-Doyle, who joins Spenmo’s board of directors, said in a statement that the company is “delighted to partner with Spenmo as the company builds its leading financial workflow software. in its category. Expense management and corporate payments remain ripe for disruption, particularly in the Southeast Asian market. “