Monzo, Tipalti, Pleo and Ideagen Get Funding Fuel

Life is looking good for a challenger bank, a payables automation platform, an expense management tool and a provider of information management software.

It’s a quartet of big funding rounds in the tech sector for Monzo, Tipalti, Pleo and Ideagen.

Challenger bank Monzo enjoyed a $500 million (£379 million) funding round. It’s now valued at $4.5 billion (£3.4 billion). The valuation is a long way off from fellow challenger Revolut, which stands at $33 billion (£25 billion).

Payables automation platform Tipalti has raised $270 million (£205 million) in Series F funding. Now valued at $8.3 billion (£6.3 billion), this round brings Tipalti’s total funding raised to date to just over $550 million (£417 million).

Fintech firm Pleo, which offers an expense management tool and company cards, has just extended its Series C round by $200 million (£151.6 million), bringing the total raised to $350 million (£265 million).

Ideagen, a Nottingham-based provider of information management software, has raised £103.5 million to be used for product investment and more acquisitions.

Merriment for Monzo 

The latest funding round for London-based Monzo was led by Abu Dhabi Growth Fund; and backed by new investors Coatue and Alpha Wave Ventures, and existing shareholders Accel and Goodwater. The news was shared with the Financial Times.

The digital bank’s valuation is an increase of more than 200% since the start of the year. Monzo has about five million customers, with 100,000 new customers joining each month.

Monzo CEO TS Anil states. “We’ve seen record revenues, launched new products and tools and continued to top the charts for our services. We’ve hired some incredible talent.”

It’s all a welcome change in fortune as it was valued at £1.25 billion in February.

The digital bank had announced it was being investigated by the UK’s Financial Conduct Authority over potential breaches of financial crime regulations. The app-based challenger also suffered a £114.8 million in pre-tax losses last year despite revenues increasing 18% to £66 million at that time.

The bank’s accountants had also indicated there was “material uncertainty” over its future and a “significant doubt” on Monzo’s ability to continue. That seems to have changed.

Looking ahead, it is exploring new products such as a platform for retail investors to invest in stocks, people familiar with the matter told the Financial Times. This will include cryptocurrency trading, although this is only at an exploratory stage.

By the way, back in September, Monzo made a number of job changes.

Tipalti Can Handle It

Californian firm Tipalti says it is now ranked 15th globally in valuation for private fintech companies. In October it opened a London office for its European expansion plans.

Tipalti will use the funding for its product roadmap and customer operations, and unspecified global expansion.

Led by G Squared, the Series F round also included investments from new investors Marshall Wace and funds and accounts managed by Counterpoint Global (Morgan Stanley), in addition to current investors Zeev Ventures, Durable Capital Partners, 01 Advisors and others.

“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,” says Chen Amit, Co-Founder and CEO of Tipalti.

Tipalti’s solution automates the accounts payable (AP) process. Its AP offering can be used for such things as supplier management, VAT compliance, procurement, invoice management, PO matching, self-billing, global payments and payment reconciliation.

The fintech unicorn currently processes over $30 billion (£22.7 billion) in total annual payments volume – growing 120% year over year.

Tipalti comes from the Hebrew expression for “we handled it”. Its customers include Amazon Twitch, National Geographic, Farmdrop, Hopin and Cazoo. Tipalti also has offices in Plano (Texas) and Toronto. It has over 700 employees worldwide.

Pleo Pleased

Pleo says the additional funds will be used to expand into Europe – with 15 territories marked for the immediate future. It also plans new hires and new spend management features.

The fintech firm is headquartered in Copenhagen. It currently offers its services to businesses across Denmark, Sweden, Germany, Spain, Ireland and the UK.

Pleo reached unicorn status in July 2021, and the new funding has nearly tripled its valuation to $4.7 billion (£3.5 billion).

The extension was led by Coatue, followed by Alkeon Capital. There was further support from the existing investors, Bain Capital Ventures, Thrive Capital, Creandum, Kinnevik, Founders, Stripes and Seedcamp. The round is “the biggest ever Series C in Denmark”.

Pleo was founded in 2015 by Jeppe Rindom and Niccolo Perra. Today, its team is 430-strong, with six European office locations (London, Stockholm, Berlin, Madrid, Lisbon and Copenhagen). Over 20,000 companies are using Pleo.

Plenty of Ideas at Ideagen

Ideagen explains that the investment was raised through placement of ordinary shares and follows its 12th consecutive year of “revenue profit” and growth.

The firm now has more than 1,000 staff across the globe. Ideagen’s operations are located throughout the UK, US, Australia, Europe, Middle East and South-East Asia. It provides quality, audit and risk software – and is used by more than 7,500 customers across various industries such as aviation, financial services, life sciences, healthcare and manufacturing.

Ideagen CEO Ben Dorks states: “Our mission is to surpass £200 million annual recurring revenue (ARR) by April 2025 and this significant milestone will be crucial in aiding further expansion that will help diversify our portfolio of high-quality, high-performing products in the global governance, risk and compliance space.”

The company recently completed its 25th and biggest acquisition to date, that of Sydney-based CompliSpace. Ideagen also bought software validation and assurance company CompliancePath for £9 million.

Ideagen’s customers include Heineken, British Airways, BAE, Aggreko, US Navy, Bank of New York and Johnson Matthey, as well as 250 hospitals across the UK and US.

Antony Peyton
Antony Peyton
Antony Peyton is the Editor of eWeek UK. He has 18 years' journalism and writing experience. His career has taken him to China, Japan and the UK - covering tech, fintech and business. Follow on Twitter @TonyFintech.
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