Company finances have been tight during the pandemic. Naturally, this has enabled technology platforms to make a compelling use case for their expense management tools.
Tech startup and developer of expense management tools targeted at small and medium-sized enterprises (SMBs), Pleo has seen great success in recent years.
In fact, the Danish company has now reached a valuation of $4.7 billion. In July, the company was valued at $1.7 billion, evidently, its value has soared in recent months.
Alongside this valuation has come significant investment from Coatue Management who is leading this funding, with Alkeon Capital. Former backers Bain Capital Ventures, Thrive Capital, Creandum, Kinnevik, Founders, Stripes, and Seedcamp have also continued to contribute.
The additional $200 million in funding comes less than six months after the company raised $150 million in a record-breaking Series C round. It was the largest-ever Series C for a Danish startup.
Pleo has cited three explanations for its sharp increase in value. Firstly, the company has gained an additional 3,000 customers since July, taking its total customer base to over 20,000. This includes Budbee, Nodes, and Tidler.
Moreover, the company believes that targeting quality software at smaller businesses has enabled it to stand out from the pack.
On top of that, the venture capital market is currently aggressively searching for exciting technology to invest in. Pleo certainly meets these criteria.
How will the investment be used?
Jeppe Rindom, Pleo’s co-founder and CEO, discussed the importance of his company in the current market: “The relevance of tooling to allow workforces to work in smooth ways while being distributed is very high right now.
“You may not be going out as much, but distributed workers need access to funds for a piece of software, or a subscription, or something else.
“Previously it’s been easy to, say, borrow a card from manager or the finance team to handle this. But you can’t do that anymore. Our product has become increasingly relevant for that reason.”
In terms of development, Rindom noted that the company would invest in developing its tools further and continuing its rapid expansion through Europe.
Michael B Gilroy, general partner of Coatue Management, discussed his firm’s investment: “We were impressed by how Pleo has already redefined the way that over 20,000 companies think about managing their expenses, saving them time and lowering costs while increasing transparency.
“We are proud to partner closely with Jeppe and the rest of the team to help drive their next phase of growth – as they continue to extend across Europe and work to transform how spend management works within businesses.”
Evidently, there is plenty of room for growth for Pleo and many will look forward to seeing how the company developed.