Fintech Unicorn Tipalti Raises $270 Million at $8.3 Billion Valuation

Tipalti, an Israeli fintech unicorn has raised $270 million in Series F fundraising at a $8.3 billion valuation, increasing its total capital to a little over $550 million.

Tipalti’s valuation has quadrupled since its $150 million Series E last year. Tipalti is now the second most valued fintech company in Israel, after Rapyd, and one of the world’s top 15 most valuable fintech companies.

Tipalti intends to hold a supplementary funding round next year in which staff will be allowed to sell shares.

In addition to current investors Zeev Ventures, Durable Capital Partners, 01 Advisors, and others, the round was headed by G Squared and included major investments from new investors Marshall Wace and funds and accounts administered by Counterpoint Global (Morgan Stanley).

“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.”

“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, G Squared. 

“The company’s differentiated solutions, combined with their strategic vision and ability to execute, position Tipalti as a true disruptor in the global payables landscape. We see a huge opportunity in the target market that is largely underserved currently and look forward to working together with Tipalti.” 

Amit sees no signs of the fintech sector slowing down and is not eager for Tipalti to go public. “I’m not sure if this is our final round of investment before an IPO,” he told Calcalist. “We are expanding, and as long as we can do so in the private sector, we will remain there. I’m not sure if we’ll go public in two or four years. The fintech business is receiving more investment than ever before, and I believe this industry is still in its infancy.”

Tipalti now employs 720 individuals, 300 of whom are based in Israel. It expects to expand its employment in Israel by an extra 300 people in the coming year when it enters its new headquarters in Tel Aviv.

Last October, the company announced its Series E round – $150 million at a $2 billion valuation. This year, it purchased Approve.com, a supplier of cloud procurement solutions, and introduced new integrations with complimentary financial tech stack companies. Tipalti has surpassed 2,000 customers and established new offices in London, Plano, Texas, and Toronto.

Tipalti customers include Amazon Twitch, GoDaddy, Roku, WordPress.com, and ZipRecruiter, which have reduced their operational effort by 80% and accelerated the financial close by 25%, according to the company.

Mid-market enterprises, defined as those with revenues between $10 million and $1 billion, account for more than one-third of employment and around 40% of GDP in the United States alone.

The challenges posed by Covid-19 and other macro shifts over the last two years have also expedited the revolution in how businesses manage their financial operations.

According to a recent Tipalti survey, 99 percent of CFOs said their jobs became more complex in the last two years, and nearly one-third of CFOs said international expansion was an area of increased responsibilities — a shift confirmed by 20 percent of CEOs who said global growth was a top priority for their CFOs. However, when CFOs manage financial operations manually, they are deprived of key resources and time that could otherwise be focused on developing and executing strategic initiatives.