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With the newly raised funds, Tradeshift plans to accelerate its growth and set the objectives on a direct path to profitability in the near future
FREMONT, CA: Tradeshift, a cloud-based business network and platform for supply chain payments, marketplaces, and apps, announced a funding round of $240 million in equity and debt. The funding came from a combination of existing and new investors, with more than two-thirds already closed. With the newly raised funds, the company plans to accelerate its growth and set the objectives on a direct path to profitability in the near future.
With more than two years of steady growth in quarterly revenue, the company recorded its best-ever year in 2019. In 2019, the company witnessed 60 percent revenue growth, with more than 300 enterprise deals closed (which is double the average size), and more than 40 percent cumulative transaction volume across the platform.
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Moreover, the capital additionally poured by the investors will be used to fuel the momentum Tradeshift has seen across core product lines, including Tradeshift Pay. Tradeshift Pay was ranked as the most potent ePayables SaaS solution in the industry in 2019 by analyst firm Ardent Partners, and Tradeshift Go, with an additional 200 new customers signing in 2019. Overall, the funding will be used for leveraging its large and growing network finance program, providing much-needed liquidity to companies in more than 100 countries.
"It's clear that the investor community has a strong focus on growth combined with profitability, and they like our plan," said Christian Lanng, CEO of Tradeshift. "As a network business, growth is always going to be a key part of our story. But it's also important that we manage that growth responsibly."
"As we reach the next phase in the maturity of our business, our focus for the coming year will be about doubling down in areas where we're seeing the greatest momentum while continuing to ensure we have the necessary balance in place to fully capitalize on the enormous opportunities in front of us."
Tradeshift will rigorously focus on cost control measures and restructuring global cost to take better advantage of Tradeshift's global shared services and partners. As the company moves towards profitability, the vital part of this process will be to ensure that sufficient resources are allocated to high performing areas of the business.
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