- The finance department of an organization can use the platform to develop policies that control how internal budgets are used.
- The technology offers the option to issue virtual payment cards, which aids finance departments in managing staff transactions.
Teampay Labs Inc., a firm that aids businesses in managing their business expenses effectively, has completed a USD 47 million fundraising round.
Today, it was revealed that the Series B round was led by returning Teampay investor Fin Venture Capital. Mastercard Inc., Trestle, Proof Ventures, and Espresso Capital also participated.
According to founder and CEO Andrew Hoag, “Teampay is entering the second half of 2022 well-positioned for future growth, as companies of all sizes strive to manage spending more strategically in the current uncertain economic environment. With this latest funding, we will continue to capture the market with our best-in-class solutions for company spend, while also growing our enterprise offering to match demand.”
The New York-based company offers a platform that assists businesses in managing their business expenses. The finance department of an organization can use the platform to develop policies that control how internal budgets are used. For instance, a finance team could create a rule stating that employee requests to buy cloud instances are automatically granted when specific requirements are met.
Teampay offers its budgeting tools in addition to the Purchase Assistant chatbot. The business claims that Purchase Assistant can process employee purchase requests automatically, saving time for finance specialists. The chatbot gathers the essential information from each purchase request, assesses it, and approves the transaction if it meets with the company’s internal budget restrictions.
The technology offers the option to issue virtual payment cards, which aids finance departments in managing staff transactions. The functionality, according to the business, enables the creation of a separate virtual card for each purchase. This procurement strategy simplifies spend management: finance teams can set card spending caps to ensure purchases don’t exceed internal spending caps.
Catalyst by Teampay, another credit card provided by Teampay, is targeted toward executives. In 2021, it debuted Catalyst due to a partnership with Mastercard.
The business plans to deepen its relationship with Mastercard using the money raised in its most recent investment round. The companies will focus on adding new functionality to the Catalyst card. In addition, Teampay will expand its sales and marketing staff and add more payment services to its platform.
Peter Ackerson, the general partner of Fin Venture Capital, says, “As corporate finance departments continue to modernize their processes to reflect better the way work gets done today, we see considerable opportunity in the growing spend management space. Teampay continues to innovate the Office of the CFO tech stack far beyond existing legacy approaches, giving CFOs unparalleled visibility and control of corporate spend.”
Teampay will be in a better position to compete in the crowded business expense management industry thanks to the increased investment. Ramp Business Corp. received USD 750 million in March for its cloud platform with the same name, which businesses use to control employee spending and carry out related financial operations. Another company in this sector with venture capital backing, Divvy Inc., has previously concluded a USD 165 million fundraising round supported by Insight Venture Partners, NEA, and other well-known investors.