Israeli financial tech company Tipalti raised a $150 million Series E round at a valuation of over $2 billion, the company announced on Tuesday.
The funding was led by Durable Capital Partners, a Washington-based VC firm focused on late-stage ventures, with participation from Greenoaks Capital and existing investor 01 Advisors, a fund founded by former Twitter CEO Dick Costolo and COO Adam Bain.
Founded in 2011 by Zeev and Chen Amit, Tipalti built a cloud platform for a global payables automation solution that streamlines all manual supplier payment processes. The company says its tech appeals to mid-market companies that have traditionally been underserved by banks.
Tipalti’s clients include major companies such as Twitter, GoDaddy, Fiverr, GoPro, Foursquare, and Vimeo.
Tipalti, Hebrew for “I handled it,” said in a press statement that will use the additional funding to “double-down on its product roadmap, accelerate its growth path, extend its global presence, and increase its market-leading position.” The company also plans to grow its teams across departments.
“This new round of investment will allow us to further accelerate our innovation edge as a leader in the payables automation space and expands our solution to the larger market,” said Chen Amit, who serves as CEO. “Tipalti is clearly needed and this enables us to be ready for all that demand.”
“The accounts payable automation space has an extremely large total addressable market with significant growth potential,” said Henry Ellenbogen, founder, managing partner and chief investment officer of Durable Capital Partners. “We believe that Tipalti has the potential to become a much larger company within the Midmarket space due to its differentiated holistic platform, superior global capabilities and management team. This has resulted in leading retention and customer satisfaction.”
Costolo, formerly at Twitter, said: “We are pleased to have the opportunity to increase our investment in Tipalti during a time in which organizations have been focused on rapidly transforming and modernizing the way they operate.
“When I ran Twitter, I saw first-hand the importance and value of Tipalti in automating financial operations. Tipalti transformed our processes and opened up our expansion, growth, and scalability strategies,” he added.
According to the company, 2020 has been a year of growth for Tipalti and it handled some $12 billion in annual transaction volume by the second half of the year, with an over 80 percent growth rate relative to last year.
Since 2011, Tipalti raised some $280 million in funding. The company has offices in Israel, San Mateo and recently opened its third location in Vancouver.