Tipalti has published a business update for the first half of 2023. While the company remains private, there is no indication of actual revenue numbers or many of the other metrics associated with SaaS vendors. Instead, it has focused on its growth, which is 41% by the number of customers, though with no indication of whether it is profitable, it is difficult to tell whether it meets the rule of 40, or not.
The 41% growth is impressive, though, more so because of the continued investment in its growth engine, which might indicate that the firm will continue to show positive results. During the first half of 2023, its global payables platform processed more than $50 billion. In March, it announced “a total payments volume of $43 billion” for comparison.
The firm also added more than 500 customers since March, bringing the total to over 3,500. During the last few months, it added some significant brands, including Jitterbit, Access Genetics, Ingenio and Spitfire Audio.
Chen Amit, CEO and Co-Founder of Tipalti commented, “We are incredibly proud of the exceptional growth and achievements Tipalti has accomplished already in 2023. Our team’s dedication, innovative spirit and commitment to our customers have been instrumental in driving our success on a global scale. We are excited about the future and will continue revolutionizing finance operations for businesses worldwide through our unparalleled automation solutions.”
Charging in Europe
While the firm dominates the US global payments market, it is also seeing growth in Europe. It launched in the UK several years ago, and this has the largest customer base outside of the US. Other countries in Europe are growing fast, notably Germany, France and the Netherlands.
The growth in continental Europe received a further boost when Tipalti received a license for its product in the EU from De Nederlandsche Bank (DNB). The license enables it to offer a full range of payable solutions across the EU. Tipalti also announced localisations for Europe as it gained the licence. The company expects this to accelerate growth in the region and expects Europe as a whole to contribute 20% to the total revenue by the end of 2024.
The company now has over 250 customers in the region, and a third of its growing partner ecosystem is also located there. Spitfire Audio, a music technology company creating virtual instrument sample libraries for music production, expressed the need to invest in finance automation to scale the company and increase efficiency.
Shahid Khalid, Head of Finance at Spitfire Audio, said, “When you’re a growing business, you always have to consider the long-term benefit. To manage our increasing amount of transactions, we either had to hire more people or invest in an automation tool,” said “Tipalti was the perfect solution for us. We’ve been able to automate the process of disbursing royalties, simplify our operations and provide expert support without any interruptions. Now, we can focus on delivering exceptional music instead of managing complex payment logistics.”
Fast-growth SaaS companies often need to rely on a robust partner strategy, and Tipalti has impressive momentum in that regard. Since it launched the program in 2019, it has grown by 300%. In the first half of 2023, it added 50 new partners, including RSM, Klear, Net at Work, Zift Solutions and Swaarm. The firm also joined the QuickBooks Solution Provider Program (QSP), opening up its solution to one of the largest accounting platform customer bases globally. It also invested in its partnership with Microsoft Dynamics Business Central (BC) and Xero, joining the Xero App Store in the US and the UK during the year. It was also designated as a Sage Tech Partner Plus, further cementing a relationship with a major player.
One vendor which may have seen a decline in growth is Oracle NetSuite, with that firm adding payables automation to its platform and reducing the functionality gap between the two solutions. However, the Tipalti platform, which offers AP automation, mass global payments, procurement and cards, still differentiates in its ability to reduce fraud and increase efficiency.
Tipalti continues to invest in its products, adding a full expenses solution and a physical bank card in the US to its portfolio. The ability to combine corporate payables with employee expenses is a significant advantage.
The company also enhanced its AI capabilities, embedding OpenAI’s GPT-4 technology to strengthen Tipalti Pi (Payables Intelligence). These capabilities include Auto Coding, which analyses the context of the purchase order, the invoice and the ledger and will allow for improved matching accuracy and help further eliminate manual coding.
It also launched Ask Pi, an AI-powered digital assistant that allows customers to easily access information and answer key business questions instantly, saving time and resources.
Enterprise Times: What does this mean
In May 2023, Tipalti raised another $150 million in a round led JPMorgan Chase Bank and Hercules Capital. The backing of a major bank is significant, and it will be interesting to see what synergies emerge over the next few months.
Tipalti is growing steadily. The opening up within Europe should help to maintain its growth trajectory. However, whilst it has a larger presence in the UK and a much smaller one in the Netherlands, it will almost certainly need a stronger local presence in Germany and France to see significant customer growth. It is currently only recruiting in the UK and the Netherlands in EMEA.