Payhawk Looks to M&A After 86% Revenue Jump
Spend management platform Payhawk is reportedly entering acquisition mode. Co-founder and CEO Hristo Borisov stated in an interview with CNBC on Thursday (June 6) that the company aims to acquire early-stage startups that have already raised significant funds. He asserted that Payhawk has a better “product-market fit” than its competitors, who have achieved multibillion-dollar valuations by offering free corporate cards to other startups. Payhawk issues smart cards for employees to make payments and track expenses, and it has seen significant growth in the first quarter of the year, with revenues up 86% and a 57% increase in customers. To build on this growth, Borisov mentioned that the company hopes to merge with or acquire other firms. “Many businesses that got funded in the last two or three years are now in a position where they’re looking at strategic options,” Borisov said. “This is something we’re actively doing. We’re looking for companies to buy.” “Our vision is to be able to provide a single platform that provides a homogeneous environment for your corporate expense needs with a single provider,” he added. “There is going to be some market consolidation.” These efforts coincide with the shift from traditional expense management methods to digital solutions that speed reimbursement times and reduce the risk of human error. This trend was highlighted in a recent PYMNTS report, which discussed how businesses are embracing artificial intelligence (AI) and machine learning algorithms to optimize procurement and spend management strategies. Edwin Poot and Jonathan Vaux, global chief technology officer and head of propositions and partnerships at Thredd, discussed with PYMNTS how the largest corporations in America still use very old, monolithic systems to manage their treasury functions. Ernest Rolfson, CEO and founder of Payments-as-a-Service solution Finexio, pointed out the inefficiency of manually filing reporting and reconciliations, advocating for automated, digital solutions. Research by PYMNTS Intelligence has shown that virtual cards and digital spend management solutions can help finance departments close books faster while also guarding against fraud.