Candex, a leading startup in the procurement management industry, has just announced that it has raised an impressive $45 million in a Series B investment round. The funding was led by Goldman Sachs, with participation from WiL (World Innovation Lab), Altos, NFX, Craft, JP Morgan, American Express, and Edenred. This new investment brings Candex’s total raised capital to $85 million and will be used to expand its presence in Asian markets and develop a new product for customers with high-volume, small payment needs.
Key Takeaway
Candex, a procurement management startup, secured $45 million in a recent Series B funding round led by Goldman Sachs. The investment will be used to expand the company’s presence in Asia and develop a product for customers with high-volume, small payment needs. Candex’s success can be attributed to its ability to automate and digitize procurement processes, providing businesses with faster and more efficient vendor management and payment solutions.
Continued Growth in the Face of the Pandemic
Despite the challenges posed by the ongoing pandemic, Candex has experienced significant growth due to the increasing demand for automation and digitization in procurement processes among businesses. As companies strive to streamline their operations, Candex has been able to provide innovative solutions that simplify vendor management and payment processes. With a client base that includes major global corporations and a revenue model that demonstrates consistent growth over time, Candex remains resilient in the face of economic headwinds.
Candex has demonstrated substantial growth over the past four years, doubling in size annually. CEO Jeremy Lappin confidently predicts that the company will more than double its revenues again this year. Furthermore, Candex’s current financial stability is reflected in its runway, which extends easily over a decade. The substantial up-round investment from the Series A and the involvement of Goldman Sachs as a partner reinforces Candex’s position in the market and highlights its commitment to financial stability and compliance.
A Focus on Innovation and Global Expansion
Founded in 2011, Candex initially specialized in software to assist companies in their recruitment vendor purchasing processes. In 2017, the company expanded its scope to cover purchasing from any vendor and spend category, offering a comprehensive solution for unmanaged expenditures. Candex’s platform integrates seamlessly with third-party procurement and enterprise resource management software, enabling businesses to streamline their operations and accelerate payment processes.
One key feature of Candex’s platform is its ability to expedite payment to vendors, reducing the payment period from weeks to minutes. By automating administrative tasks and leveraging AI models to verify invoices and ensure tax compliance, Candex facilitates faster and more efficient transactions. This approach sets Candex apart from other solutions on the market, such as purchasing cards or business process outsourcing, which often come with additional compliance and accuracy challenges.
Impressive Customer Base and Future Growth Plans
Candex boasts an impressive roster of around 100 top brands as customers, including Sanofi, HSBC, Dell, L’Oreal, and Colgate. To accommodate its growing customer base and to meet the increasing demand for its services, Candex plans to expand its team by more than 50% in the coming year. As the modern enterprise continues to have a global supply base with complex regulatory requirements, Candex aims to provide enduring solutions that effectively address these challenges.
