Mesh Payments, based in New York, has raised $60M in a Series C funding round led by Alpha Wave. Existing investors Tiger Global, TLV Partners, Entreé Capital, and Meron Capital also participated in the round.
Mesh last raised $50M in a Series B funding round led by Tiger Global in December. The new investment brings the company’s total funding to $123M.
Mesh Payments, founded in Israel in 2018 and now headquartered in New York, is one of a growing group of startups focused on assisting businesses in managing their spend through automation.
It’s a hot and crowded market that includes Ramp, Brex, and Airbase, as well as, more recently, TripActions and Rho.
Fund usage
Mesh plans to use the new funds to expand its go-to-market efforts and accelerate product innovation.
Mesh asserts that its platform renders traditional corporate cards “obsolete” by giving finance managers “more granular” control over their corporate spending. It claims that its emphasis on payment models, such as SaaS subscription management, and its arbitrary Visa physical card set it apart from the competition.
“Since day one, Mesh has focused on giving CFOs the automation and insights they need to more effectively manage their day-to-day operations,” said Oded Zehavi, co-founder & CEO, Mesh Payments. “And as companies operationalize distributed and remote workforce models, holistic visibility over company spend is even more critical. The confidence in Mesh from investors and customers, even in a turbulent market, reinforces that our finance automation platform is what companies want to help them navigate a cost-cutting environment.”
“The best CFOs are looking to get the most out of every dollar and hour, particularly during times of economic turbulence. With its strategic partnerships and best-in-class finance automation platform, Mesh Payment delivers exceptional value to its customers,” said Rick Gerson, co-founder chairman, and chief investment officer, Alpha Wave Global. “Mesh Payments represents the type of innovative, customer-focused company that we look for, that gives customers a clear and lasting benefit. The number of companies that are open to finding new and better ways to spend less and save more is pretty large and the Mesh team brings a best-in-class solution that is continually improving.”
Mesh claims that following a raise in November 2021, its revenue run rate tripled in the first half of 2022. Over a thousand customers use the company’s platform today, and its annualised payment volume (TPV) is close to $1B.
The midmarket is the company’s sweet spot; among its clients are Monday.com, Hippo Insurance, Sezzle, Riskified, and Snyk.
Mesh currently employs 150 people, with sales and marketing taking place in the United States and product development and management being overseen from Tel Aviv. Its COO, CFO, and CPO are among the 60% of women in the C-suite.
Partnership with Papaya Global
In an effort to “remove friction from employee expense management,” Mesh partnered with global payroll provider Papaya Global earlier this year. It plans to form additional, similar partnerships in the future.
