Candex, a startup aiming to simplify procurement, particularly vendor management and payment processes for businesses, has announced a successful $45 million Series B investment round. The round was led by Goldman Sachs with participation from WiL (World Innovation Lab), Altos, NFX, Craft, JP Morgan, American Express, and Edenred.
This brings Candex’s total funding to $85 million, and the capital will be utilized to expand the company’s presence in Asian markets and introduce a new product tailored to customers with small, high-volume payment needs, as revealed by CEO Jeremy Lappin in an email to TechCrunch.
According to Lappin, Candex experienced growth during the pandemic as businesses sought to automate and digitize various aspects, including procurement. The company has also remained resilient to the tech slowdown and benefited from a stable client base in the Global 2000, with a revenue model that grows over time. Lappin expressed confidence in Candex’s ability to continue winning new clients and growing regardless of economic headwinds.
Candex’s growth is evident as it has doubled in size annually over the last four years and is on track to double its revenues again this year, Lappin added, noting that the company’s current runway is over a decade.
Regarding the investment, Lappin emphasized that it was a substantial up-round from the Series A and explained the choice to partner with Goldman Sachs due to their financial stability and focus on compliance. WiL was also added to the investment group for their potential to support Candex in the important Japanese market.
So, how did Candex reach this stage?
It all began in 2011 when Lappin and Shani Vaza-Wahrmann developed software to assist companies in purchasing from recruitment vendors. In 2017, the software’s scope expanded to cover purchasing from any vendor and spend category, now encompassing most “tail spend,” or unmanaged expenditures across products and services.
Lappin claims that Candex’s platform, designed to work with third-party procurement and enterprise resource management software, enables businesses to pay vendors in minutes, streamlines data management, and generates spend insights. The use of AI models accelerates workflows by verifying invoices and ensuring correct transactions.
Candex’s customer base, which includes Sanofi, HSBC, Dell, L’Oreal, and Colgate, represents around 100 brands. To accommodate this base, Candex plans to expand its 120-person team by over 50% next year.
“The modern enterprise has a supply base that’s extremely global, requiring compliance with myriad local laws and regulations, making tail spend management extremely difficult to do well and can result in wasted time and money for both buyers and suppliers,” Lappin explained. “Our goal is to build a very global and enduring business.”