There is still no end in sight for the summer of mega deals for fintech companies. After closing major investment rounds for neobroker Trade Republic and Berlin-based insurtech Wefox, Danish financial startup Pleo has followed suit. The company raised $150 million, as it announced, bringing its valuation to $1.7 billion. It is thus the first Danish fintech unicorn. That’s the term used to describe startups with a valuation of more than $1 billion. The latest funding round was led by two major U.S. venture capitalists, Bain Capital Ventures and Thrive Capital, which have also invested in other large startups such as LinkedIn and Lemonade.
Copenhagen-based fintech company Pleo says it offers a one-stop solution for corporate expenses, primarily to smaller and medium-sized companies with up to 1,000 employees. Specifically, employees receive their own company expense cards, for example, which they can use to pay for purchases for work or even business-related train rides and flights. Employees can also simply photograph receipts with their smartphone and save them in the app – the company advertises no more tedious paperwork.
Invoices are then digitally categorized. Companies can set spending limits for the cards. Spending itself is tracked and stored in an app in real-time. The Pleo app can also be integrated with accounting, so the process of spending should be completely automated.
Read more on the subject and find the latest business news in the world with the Born2Invest mobile app
The idea is to regain control overspending as an organization, said Pleo co-founder Jeppe Rindom in an interview with F.A.Z. Companies waste a lot of time on expense management. The idea came to him when he was head of finance at another company. There were no individual cards for employees, so they occasionally used Rindom’s card for various expenses. Over time, however, he lost track of who currently had their card or which subscriptions were still running on the company card. The complexity was far too high, said Rindom. He wanted to solve the problem primarily from a payment perspective, rather than from a software perspective, as SAP does.
Pleo is not the only vendor pushing into the lucrative spend management market. The French start-up Spendesk is currently also present in Germany with its own software. There, as with Pleo, all expenses can be collected and tracked in an app. The German provider pliant is also among the competitors.
Companies pay 10 euros a month per employee who uses Pleo. That’s not a lot of money, Rindom says, considering it can save money equivalent to an employee’s monthly salary. Pleo also offers smaller companies with five to 10 employees free use of the platform with fewer features.
The company has ambitious goals
Founded in 2015, the fintech company Pleo now counts around 17,000 companies in Denmark, Sweden, Germany, the UK, Ireland, and Spain among its customers. Every week, a total of 300 new companies are added, says Rindom. The largest market is currently still the United Kingdom – although the company started there earlier – but it is already being followed by Germany. The German market, in particular, seems to be attractive; estimates put the number of small and medium-sized companies in this country at just under 3.5 million.
The money from the financing round is to be used for further growth and, among other things, to finance new hires. Currently, 330 employees work for Pleo – by the end of next year, the number should be 1000. This will probably be necessary if the company is to achieve its extremely ambitious goals: The number of customers is to rise to one million by the end of 2025.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in FAZ.NET, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Esperio Partners Review]
This week, we're here to tell you why affiliate marketing is the meaning of life. And no, that's not a...
Binance: Problems with Paysafe and SEPA – Customers Should Exchange Euro for Tether
It is known that Binance has problems with regulators in several European countries, including Germany. But the fact that support...
Qualitime Plans to Reach a Turnover of €11 Million in 2026
At the moment, Qualitime application has 1,800 registered visitors from the main laboratories in the country and about 400 health...
Peruvian Mining Companies Urged to Focus on Redouble ESG Certification Efforts
Experts recently said that the ESG certification of mining companies with operations in Peru will become increasingly important. They also...
Safeguarding Your Business Funds in Periods of Economic Uncertainty
The dust hasn’t yet settled from the 2023 banking crisis, and another closure could very well be right around the...
Markets2 weeks ago
An Interesting Volatile Week for the Stock Markets
Fintech4 days ago
Citi Announced a $6 Million Loan to Sempli for SME financing
Biotech2 weeks ago
AbolerIS Pharma Closes a Round of €27 Million Led by Caixa Capital
Business7 days ago
Current Woes in Bonds Promise Future Grief for Stocks: Focus on Dow Jones