Payoneer, a provider of digital cross-border payments and transaction-related services, has raised $180 million from investors in order to capitalise on the explosion of businesses globalizing their operations. Although the firm has been in the black for three years, it proceeded with raising the finance to assist with the expansion of its workforce and global presence.
Growth-equity firm TCV led the round, with participation from existing investor Susquehanna Growth Equity, bringing Payoneer’s total funding to $275 million.
The goal is to become a global platform for people to deal with international trade.
TCV invested as a result of CEO Scott Galit and his team prioritising the improvement of and addition of new technology, a necessary trait to take advantage of companies increasingly digitizing operations, according to general partner Woody Marshall, who added that TCV mostly invests in companies that are growing at least 40 percent a year.
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“Where they’re going to be in 12 months, 18 months, is going to be significantly different,” he continued. “The goal is to become a global platform for people to deal with international trade, so there’s lots of things to work on on the product side, and there’s also the regulatory and compliance side.”
According to a report in Bloomberg, $155 trillion in business-to-business payments moved across borders in 2014, but these transactions are still very expensive and therefore provide opportunities for innovation.
Payoneer’s technology allows small- and medium-sized companies to pay and manage invoices over the internet rather than using checks and paper. Amazon, Google, Airbnb and Getty Images use Payoneer to pay the businesses, proprietors and freelancers using their platforms en masse. Around half of Payoneer’s revenue comes from bulk payout.
Some of the cash Payoneer raised in the most recent round was used to buy some shares of previous investors to help it get liquidity. Payoneer clocked more than $100 million in revenue in 2015 and it has been estimated that the company is valued at about $880 million after the most recent funding.
Finance Magnates interviewed Payoneer’s CEO Scott Galit earlier this week. Read the article here.