Expensya, a Tunisian and Paris-based expense management startup, was acquired last June by the private equity firm Medius for slightly over $100 million. This acquisition resulted in a cash payout for the employees, with 180 shareholders collectively making $10 million, two-thirds of which was in cash. This event highlights the potential of African-founded products to serve global markets and be acquired by larger companies.
Key Takeaway
The acquisition of Expensya by Medius for over
00 million resulted in a
0 million cash payout for the company’s employees, highlighting the potential of African-founded products to serve global markets.
Shift in Narrative
For years, African startups were encouraged to focus on building solutions for the continent. However, there has been a notable shift in this narrative, with investors now urging startups to adopt a global mindset when developing their products. This shift is driven by the challenges faced by startups in African markets, such as currency devaluation issues and slower revenue growth in dollar terms.
Global Focus from Day One
Expensya’s founder and CEO, Karim Jouini, emphasized the importance of adopting a global focus from the beginning. The company specializes in automated expense management solutions tailored for European businesses and quickly adapted its product to function in multiple European countries. Despite the challenges of being a Tunisian startup, Expensya successfully navigated the European market and established itself as a competitive player.
Challenges and Opportunities
While Expensya faced challenges such as talent shortage and competition from established companies, it also benefited from lower operational expenses compared to similar companies operating in Europe. The acquisition by Medius not only provided a cash payout for the employees but also positioned Expensya as part of a global success story.
