Tipalti has announced that it has secured $200 million in growth financing from existing backers, Hercules Capital, Inc. Hercules and JPMorgan Chase led Tipalti’s growth financing round in May 2023, which raised $150 million.
Catherine Jhung, Senior Managing Director of Hercules Capital, commented, “We are proud to deepen our long-standing partnership with Tipalti at such an exciting stage of their growth journey. Their proven track record of pairing strong growth with meaningful product innovation makes them a rare company. In today’s economic climate, where efficiency and agility are table stakes, businesses need partners who are not only resilient but forward-thinking, and Tipalti exemplifies both.”
The new finance will support its product development, specifically in the areas of AI, and facilitate its global growth. An example of the investment in AI is the release of new AI agents that will assist Finance professionals by automating processes.
Enterprise Times spoke to Rob Israch, President of Tipalti, about this announcement and had a wider conversation that will be published at a later date. I asked how Tipalti will support product development, whether through organic growth or acquisition.
He replied, “Primarily organic growth. We were pretty choiceful on acquisitions because we’re so focused on the customer experience. We don’t do logo acquisition to help the revenue line. It’s always in line with the strategic vision of the business. The focus is internal organic growth, building AI into the platform, integrating Statement into the solution, and improving our other solutions.”
Regarding international growth, will Tipalti expand into new regions or invest in strengthening its existing presence?
Israch replied, “It’s about the growth of the existing ones. The EU and the UK remain core focuses for our international growth. We’ve also launched in Canada over the last few years. Right now, we’re really focusing deeply on those markets. Still tons of growth to be had in all those markets.”
Growth funding is a consequence of expansion
The announcement comes as Tiplati recently celebrated passing $200 million in ARR. Over the last year, it has grown its customer base by 30%. Brands including Calm, Udemy, AG1, and AppLovin now use the firm’s software. They rely on the Tipalti platform to eliminate manual workloads, accelerate visibility, reduce risk, and ensure compliance at scale.
Tipalti continues to strengthen its payments platform, now processing around $75 billion annually, marking a 30% year-over-year increase. The expansion is happening across the US, Canada, the UK, Benelux, Germany, the Nordics, Spain, and the broader EU.
I asked Israch where that growth was specifically coming from internationally. He said, “Benelux growth has been fantastic. Canada is doing quite well in the early days. Germany, we’ve made a lot of good progress in terms of adding German language translation and E-Invoicing in eight countries across the EU.”
Chen Amit, CEO and Co-founder of Tipalti. “Crossing over the $200M ARR threshold is a testament to both the value we deliver to our customers and the growing urgency for finance operations efficiency globally.
“As trust and reliability are paramount in our business, we’re proud to help mid-market finance teams scale smarter with intelligent automation. Our market opportunity is immense. As an innovation leader, we are building for long-term impact as we redefine what’s possible for modern businesses through AI.”
Delivering the next wave of AI innovation for Finance
In June, Tipalti announced the acquisition of Statement, an AI-native treasury automation startup. The acquisition saw Tipalti gain Robin AI, the world’s first AI treasury assistant. It has now created several powerful, context-aware AI agents to assist finance teams across various elements of finance automation. These assistants will help organisations to increase productivity, surface insights and free up time for other work.
The agents complete different tasks that help eliminate much of the manual work that finance teams undertake. The Agent still contains the human in the loop, delivering the control that finance leaders need. What finance leaders cannot do is ignore this shift.
Roby Baruch, Chief Product and Technology Officer, Tipalti, notes in a blog, “For finance teams, this shift is game-changing, and it also means AI is no longer optional. Teams that have AI working seamlessly beside them are not just more efficient; they move faster, make smarter decisions, and scale their impact.”
Tiplati has delivered these AI-powered capabilities with governance and control, keeping the human in the loop where needed. The AI complements Tipalti by delivering proactive controls, such as duplicate bill detection, while maintaining audit trails and ensuring the correct approval trails are followed.
What are the Tipalti agents?
Tipalti now has agents and AI embedded across its portfolio of solutions, including accounts payable, global payouts, procurement, employee expenses, supplier management, and tax compliance.
The agents now include:
- Reporting Agent: Grants access to real-time spend insights and creates reports using natural language, which is required. The Agent will deliver actionable insights from supplier, procurement, invoices, and payment data. Users can refine parameters, adjust layouts, filter data, and save dashboards for real-time visibility and analysis.
- Bill Approver Agent: Eliminates approval bottlenecks by predicting and recommending the right approver immediately for any bill.
- Purchase Request Agent: Will generate a complete purchase request based on natural language input from an employee.
- Invoice Capture Agent: Uses OCR to capture data from invoices and completes data fields without human input.
- Tax Form Scan Agent: Ensures supplier tax compliance with information that extracts W-9 data to accelerate onboarding.
- ERP Sync Resolution Agent: Resolve ERP and accounting software sync issues in minutes, not hours, with automation that diagnoses and guides every fix.
- Expense Receipt Scan Agent: Capture employee expenses effortlessly with automation that extracts receipt data and accelerates expense reporting submission.
- A new Branded Experience Agent: Deliver a seamless, branded payee onboarding experience with AI-powered customisation, ensuring speed, consistency, and reduced friction.
The reporting agent is already in use by customers. Kanan Mammadov, VP of Procurement at Lantern Community Services, said, “Tipalti’s AI capabilities have streamlined our operations tenfold. With invoice capture and real-time reporting, my team has complete visibility into approvals, coding history, and potential errors. I can now generate reports instantly, clearly see approval workflows, and trust that the data is accurate every time.”
In addition, Tipalti has improved the AI Assistant, the conversation agent that combines Tipalti’s knowledge with advanced reasoning. Finance teams can ask any question in natural language relevant to the Tipalti platform using an intuitive, multilingual chat. Users can:
- Get instant answers about finance operations
- Onboard faster and become super Tipalti users
- Generate custom reports in seconds
Enterprise Times: What does this mean
This is a significant boost to Tipalti and a vote of confidence from its investors. The growth rate is impressive, with Amit and Israch demonstrating that they can continue to capture a significant market share. Interestingly, Hercules appears to have invested in Tipalti on its own, without sharing the investment or risk with any other company.
With this investment, it will be interesting to see how Tipalti delivers its platform both vertically and horizontally. However, the firm has a key focus on the mid-market, which is refreshing to see. It has meant that its growth trajectory has continued on an even basis rather than stuttering like some have as they chase enterprise deals.
