Israeli Fintech start-up Tipalti announced that it has raised $270 million in series F funding at a valuation of $8.3 billion, bringing total funding raised to date to just over $550m. and placing Tipalti among the most valuable private fintech companies in the world.
“This latest investment will enable Tipalti to add more to our product lines and capabilities in the next 18 months than we have over the past 10 years combined,” said Chen Amit, co-founder and CEO of Tipalti. “We are on a journey to transform financial operations, relieve finance leaders from those mundane, cumbersome, risky tasks, and elevate the financial capabilities for high velocity organizations to rival those of the Fortune 5000.”
Led by VC firm G Squared, the Series F round also includes significant investments from new investors Marshall Wace and funds and accounts managed by Counterpoint Global (Morgan Stanley), in addition to current investors Zeev Ventures, Durable Capital Partners, 01 Advisors and others.
“We believe Tipalti is reshaping how businesses manage their financial operations, and their growth and industry-leading retention rates are evidence that they are on a mission to solve important challenges for their customers,” said Larry Aschebrook, founder and managing partner of G Squared.
In the US alone, mid-market companies, defined as those with revenues between $10m. and $1b., account for more than one-third of employment and about 40% of GDP. The challenges brought about over the last two years with COVID-19 and other macro changes have also accelerated the transformation in how companies are managing financial operations.
A recent survey found that 99% of CFOs said that their jobs became more complex over the past two years, and almost one-third of CFOs noted that international expansion was an area of increased responsibilities – a shift confirmed by 20% of CEOs who indicated global growth as a top priority for their CFOs. However, when CFOs are manually managing financial operations, they lack critical resources and time that could otherwise be spent on scaling and executing strategic initiatives.
Tipalti currently processes over $30b. in total annual payments volume, representing a growth of 120% year over year. Last October, the company announced its Series E round, which raised $150m. at a $2b. valuation. This year, Tipalti passed the 2,000-customer mark – among them Twitter, Amazon Twitch, Roblox and National Geographic – and opened new offices in London; Plano, Texas; and Toronto, Ontario, and has grown to over 700 employees worldwide.