May 25, 2022

less than seven months after closing $57 million Series BFast-growing fintech company Jeeves has raised $180 million in a Series C round, valuing the company at $2.1 billion.

Fintech companies raising multiple rounds in a short amount of time have recently become the rule rather than the exception. However, the growth rate and expansion rate of creatures is impressive.

When it launched in September, Jeeves, which describes itself as “the all-in-one corporate card and cost management platform for global startups,” was valued at $500 million. This means that its value has quadrupled in just six months. It’s also notable that Jeeves didn’t launch publicly until March 2021 and officially came out of hiding last June with $31 million in equity funding and $100 million in debt. In the summer of 2020, Jeeves was a member of the summer band Y Combinator.

Its success is another example of how competitive and profitable the corporate card and expense management category has become. For example, Jeeves says that since the Series B announcement in September, his sales have grown 900% and his customer base has doubled to over 3,000 companies. Gross transaction volume (GTV) reached almost $1.3 billion year on year and is expected to reach $4 billion by the end of the year.

“When I built the Raw Series C deck in December, I realized that our revenue had more than doubled compared to the month of November,” said Dilip Tazmon, CEO and Founder of Jeeves. “Then we got more revenue in the first two months of 2022 than we did in 2021.”

Tencent led the latest growth, which included family offices of GIC, Stanford University, Andreessen Horowitz (a16z), CRV, Silicon Valley Bank, FT Partners, Clocktower Ventures, Urban Innovation Fund, Heaven Ventures, Gingells, Spike Ventures and more. The two founders of FAANG and Carlo Enrico, President of MasterCard in Latin America and the Caribbean. The company has raised over $380 million in the last 12 months.

“We ended up with five condition sheets, which was a test at a time when we were looking for a harder and more challenging fundraising environment than before,” Tazmon told gaming-updates. “The market looked very different in January and February than it did in December.”

So what exactly does Jeeves do? The company says it provides underwriting, local currency loans and payment for “business expenses in various countries and currencies.” It currently has clients in 24 countries in North America, Latin America, the UK and Europe, including high-growth startups, e-commerce companies and SMEs including Bitso, Kavac and Belvo.

Jeeves was founded in 2020 on the basis that startups have traditionally relied on local and country-specific financial infrastructure. For example, a company with employees in Mexico and Colombia will need multiple vendors to carry out its financial functions in each country: one in Mexico for corporate cards, one in Colombia, and another vendor for international payments.

The startup claims that by using its own “banking as a service” infrastructure, any company can launch its financial function “in minutes” and offer corporate cards (with 4% cashback), cardless railroad payments. 30 days. As well as cross-border payments. Customers can also pay in multiple currencies, minimizing currency exchange (foreign trade) fees.

For example, a growing business can use a Jeeves card in Barcelona and pay in euros, and use the same card in Mexico and redeem in pesos minus foreign exchange fees and can match expenses directly with the currency.

Tazmon believes the “biggest thing” the company is building is a global BaaS layer located at multiple banking institutions in each country, to which the Jeeves end-user application will connect.

“From our perspective, he really owns the entire pay stack,” Tymon told gaming-updates.

Like many other fintechs in the field, Jeeves has expanded its scope over time. For now, corporate cards, which make up about 45% of Jeeves’ business today, remain a staple.

“But we have other channels that are just as important and growing rapidly, including B2B payments, working capital loans, and Jeeves Growth, a revenue-based financing product,” Tazmon said.

As gaming-updates has widely reported, the number of startups focused on corporate spending and cost management continues to grow. We reported on Monday that Disaster has raised $200 million and secured $550 million in debt at an $8.1 billion valuation.

“Space is expanding, as is THERE,” Tymon said. “More companies go online every day and they need to manage costs.”

But, in his opinion, the winners will be companies that “do not compete only on credit, because then you compete in who will give you money faster.”

“I think when you compete on infrastructure you start to get an edge because then you own the stack and can create efficiencies that you can’t get if you’re a supplier that’s a local bank. said.

Tazmon also believes that there will one day be a sort of gap between startups focused solely on obtaining credit and those building infrastructure.

“Which What we are trying to do is create an end user banking relationship so that if you need to pay we can do it. If you need a loan, we can do it. If you need a deposit, we can provide it for you. If you want to start a business, you can open an account with us and travel to any country with any currency you need. Tazmon told gaming-updates. “What sets us apart from many players is that we have our own layer of infrastructure and it is an actual product that connects to different banking institutions in different countries.”

image credit: Jeeves

However, he believes that there will be many different players for different market segments.

“I don’t think it’s a place where you have just one company around the world that owns everything,” Tymon said. “He’s just huge.”

The company plans to use its new capital for its expansion into Latin America, Canada and Europe to expand its infrastructure to cover more currencies, hire more employees and create a “platform but to include new companies.” Accelerate The goal is to reach over 40 countries over the next three years. In the short term this Southeast Asia and possibly Saudi Arabia and Africa.

Describing itself as a hybrid remote company with offices in Mexico City, London, Toronto and Co-Paulo, Jeeves currently has 150 employees in 10 countries. The company recently hired several new executives, including: Arpan Nanawati, former Head of Engineering at PayPal and Director of Engineering at Walmart, as Chief Technology Officer, and Trent Beckley, who previously led Strategic Partnerships at Google and Director of Partnerships to serve under More .

A16Z general partner Angela Strange says her company has tripled since pioneering Jeeves Series A and investing in Series B as the company “continued to perform very well.”

“Jeeves creates first-class financial operating systems for global companies. Starting with credit cards, the company quickly expanded into local payments, multi-currency solutions and working capital loans,” she told gaming-updates. “Jives have created a truly scalable architecture where they can be connected to the local infrastructure of any country, getting rid of Jeeves. Not only to provide an optimal user experience in each country, but also allow them to scale countries much faster.”

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