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Business Expense Management

Platforms, apps, and cards to keep the corporate wallet in check

Overview

Platforms and cards to keep the corporate wallet in check

Business expense management platforms is the umbrella term that includes all software, apps, and cards used to automate expense reimbursement and payout activities. The platforms offer ease and control by automating the spend and payout management of enterprises with adequate internal checks and balances. Technologies work together to enhance the value of these platforms. For example, using optical character recognition (OCR) to automate billing and reimbursements, making payments through the platform, and integrating with third-party apps enable platforms to deliver better insights to help cost controls.

Businesses are going global, and opportunities for remote work have mushroomed as “work from anywhere” becomes a fast-growing norm. But managing cross-border employee expenses, procurement, and supply chain dynamics has become more complex. In a natural evolution, expense management is now a necessity for enterprises, as poor expense management and internal controls have become a gateway for employee theft and a leading cause of small businesses failing.

What's driving this industry?
Market Sizing

The US business expense management and AP automation platforms market could reach USD 3.3 billion–4.5 billion by 2026.

Conservative case

USD 3.3 Bn

Base case

USD 3.9 Bn

Expansion case

USD 4.5 Bn

USD billion00.751.52.2533.754.55.25202120222023202420252026
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COVID-19 IMPACT

  • Covid-19’s impact on the sector was largely favorable, with businesses needing expense management solutions either to curtail spending in response to lower revenue or manage the costs of rapid expansions.

  • However, remote operations and fewer social engagements (like business lunches) also implied lower travel and entertainment expenses - leading to declines in these segments. 

  • Industry expansion was evidenced by several players seeing strong growth in the demand for their platforms:

    • Payments processed by Melio surged around 5,000% in the 18 months leading to September 2021.

    • Teampay reported that its annual recurring revenue (ARR) rose around 320% from September 2019 to October 2020.

    • Expensya's business reportedly grew around 100% during the pandemic. 

    • Plate IQ expanded its customer base by about two-thirds during March 2020–November 2021.

  • Companies have also chosen to expand their payment offerings in response to higher demand from the pandemic. For instance, 2020 saw the launch of “Tribal Pay” and "TripActions Liquid."

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Market Mapping


Many startups and incumbents in the space have chosen to operate across several segments, including leading disruptors TripActions, Expensify, Ramp, and Pleo. Business payout management platforms represent the most commonly targeted segment, with the highest incumbent and disruptor presence. The segment is relatively mature, comprising many growth stage disruptors like Coupa Software, Branch, and Melio as well as leading incumbents such as Stripe, SAP, and PayPal.

Business expense cards and non-card expense management platforms both represent less mature segments, with fewer disruptors (many of which are yet to reach the growth stage). Incumbent presence is also lower in each of the segments; however, in recent times established players have shown interest in entering the space through acquisitions. For instance, Bill.com acquired business expense card platform Divvy in May 2021, while Certify acquired 4 card and non-card expense management platforms in 2018–19 (Chrome River, Captio, Abacus Labs, and Emburse).

Incumbents
Growth
Early
Seed
Pre-Seed
Business expense cards
?
Non-card expense management platforms
?
Business payout management platforms
?
FacturaDirecta
FacturaDirecta
FacturaDirecta
Stripe
Certify
Revolut
TripActions
Brex
Ramp
Tipalti
Pleo
Jeeves
Spendesk
Soldo
Payhawk
Expensify
Stampli
Procurify
Expensya
Airbase
Plate IQ
Tribal Credit
Yokoy
Torpago
Center
Candis
PayEm
TeamPay
Zevoy
Circula
Expend
SAP
Zoho
Revolut
TripActions
Ramp
Pleo
Spendesk
Payhawk
Coupa
Expensify
AppZen
Expensya
Accrualify
Airbase
Yokoy
PayEm
Circula
Itemize
Rydoo
Expend
1Tap
Findity
ExpensePath
Gorilla Expense
Minute7
PayPal
American Express (Amex)
Quickbooks
Elmo cloud
Global Payments
FIS
Bill.com
Brex
Ramp
Branch
Tipalti
Melio
Pleo
Spendesk
Payhawk
Coupa
Modern Treasury
Conexiom
Expensify
AppZen
Stampli
Vitesse PSP
Procurify
Accrualify
Yooz
Glantus
Airbase
Plate IQ
Tribal Credit
Yokoy
Paymerang
Candis
Regate
PayEm
TeamPay
Itemize
Aavenir
Plooto
Factura.ai
Planergy
FacturaDirecta
Easy Access
ZTL Payment Solution
Aurelia
Receipts

The Disruptors


Market led by highly funded disruptors operating across several segments

The business expense management market is led by disruptors catering to several segments, including listed companies like Coupa Software (valued at USD 4.8 billion as of August 2022) and Expensify (valued at USD 1.7 billion as of August 2022). The space also comprises several diversified private companies who have raised over USD 1 billion in funding, including Brex (valued at USD 12.3 billion as of October 2021), Ramp (valued at USD 8.1 billion as of March 2022), and TripActions (valued at USD 7.25 billion as of October 2021).

Melio remains the highest funded pure-play company (as of August 2022), and caters to the business payout management platforms segment. In terms of pure-play companies, Melio is followed by business expense cards provider Jeeves (when ranked by funding). Notably, non-card expense management platforms had the lowest funded pure-play companies (such as Rydoo and Findity - each of which had raised less than USD 10 million as of August 2022); this is partly because many players in the segment also offer a payout management platform or issue business expense cards.

Business expense cards

?

Disruptors

?
Funding in USD Millions
Expensify
Public - Market cap USD 1.2 bn
TripActions
1537
Brex
1457
Ramp
1360
Tipalti
565
Pleo
428
Jeeves
368
Spendesk
312
Soldo
263
Airbase
252
Payhawk
239
Plate IQ
165
Tribal Credit
143
Yokoy
108
Stampli
85
Torpago
80
Center
54
Procurify
32
Candis
31
PayEm
27
Expensya
26
TeamPay
21
Zevoy
21
Circula
19
Watchlist
?
Expend

Non-card expense management platforms

?

Disruptors

?
Funding in USD Millions
Coupa
Public - Market cap USD 4.5 bn
Expensify
Public - Market cap USD 1.2 bn
TripActions
1537
Ramp
1360
Pleo
428
Spendesk
312
Airbase
252
Payhawk
239
Yokoy
108
AppZen
101
PayEm
27
Expensya
26
Circula
19
Itemize
10
Rydoo
10
Accrualify
4
Findity
Unknown
Gorilla Expense
Unknown
Watchlist
?
Expend
1Tap
ExpensePath
Minute7

Business payout management platforms

?

Disruptors

?
Funding in USD Millions
Coupa
Public - Market cap USD 4.5 bn
Expensify
Public - Market cap USD 1.2 bn
Glantus
Public - Market cap USD 5.7 mn
Brex
1457
Ramp
1360
Branch
633
Tipalti
565
Melio
504
Pleo
428
Spendesk
312
Airbase
252
Payhawk
239
Modern Treasury
183
Conexiom
170
Plate IQ
165
Tribal Credit
143
Yokoy
108
AppZen
101
Stampli
85
Paymerang
36
Vitesse PSP
35
Procurify
32
Candis
31
Regate
28
PayEm
27
TeamPay
21
ZTL Payment Solution
11
Itemize
10
Accrualify
4
Yooz
Unknown
Planergy
Unknown
FacturaDirecta
Unknown
Easy Access
Unknown
Watchlist
?
Aavenir
Plooto
Aurelia
Factura.ai
Receipts

Expensify

Expensify offers an app that provides a diverse range of expense and payment solutions and insights for individuals and enterprises. It offers business expense cards and reimbursement platforms with automated receipt scanning and approval workflows. Expensify also provides bill payment solutions with automated tracking, approval, and payment.

Its corporate cards also offer benefits to users in the form of discounts when using several B2B platforms such as Stripe, AWS, Quickbooks, and Stack Overflow. Expensify can also be integrated with several third-party HR, tax, accounting, and travel platforms software.

The company follows a freemium pricing model. For business expense cards, users are charged a monthly fee per card. Non-card reimbursement and business payout management platforms are subscription-based.

Key customers and partnerships

As of October 2021, the platform had over 10 million end users, across several enterprises including La Trobe University, Swatch Group, Pinterest, and Atlassian.

Funding and financials

The company’s revenue amounted to USD 142.8 million in 2021; however, it reported an operating loss of USD 10.3 million.

Expensify raised USD 100 million through a credit facility from CIBC Innovation banking in October 2021 to invest in business growth and product expansions. The company was subsequently listed on the Nasdaq in November 2021, where it raised around USD 70 million at a USD 2.2 billion valuation.

Segment:
Business expense cards
Total funding:
USD 138.2 million
Disruptor Funding History

Business expense cards:

Expensify
TripActions
Brex
Ramp
Tipalti
Pleo
Jeeves
Spendesk
Soldo
Airbase
Payhawk
Plate IQ
Tribal Credit
Yokoy
Stampli
Torpago
Center
Procurify
Candis
PayEm
Expensya
TeamPay
Zevoy
Circula
Expend

Non-card expense management platforms:

Coupa
Expensify
TripActions
Ramp
Pleo
Spendesk
Airbase
Payhawk
Yokoy
AppZen
PayEm
Expensya
Circula
Itemize
Rydoo
Accrualify
Expend

Business payout management platforms:

Coupa
Expensify
Brex
Ramp
Branch
Tipalti
Melio
Pleo
Spendesk
Airbase
Payhawk
Modern Treasury
Conexiom
Plate IQ
Tribal Credit
Yokoy
AppZen
Stampli
Paymerang
Vitesse PSP
Procurify
Candis
Regate
PayEm
TeamPay
ZTL Payment Solution
Itemize
Accrualify
Aavenir
Plooto
Aurelia

Incumbents


In-house development and M&A are the most common avenues for market entry

Business expense management platforms/cards have a close relationship with payments and enterprise application software. Accordingly, industry incumbents include several payment giants such as Stripe, PayPal, and American Express, as well as enterprise application software providers such as Zoho, SAP, and QuickBooks. Incumbents typically either develop expense management solutions in-house or acquire companies to expand into the space. However, several companies such as Stripe, PayPal, and American Express have also chosen to invest in industry disruptors, while QuickBooks chose to partner with Melio to offer a business payout solution. 

Most incumbents operate in the business payout management platforms segment (e.g., PayPal, Global Payments, and FIS). However, some incumbents have chosen to operate across several segments. The business expense card segment has the lowest incumbent presence, with only Stripe, Revolut, and Certify offering in-house solutions. Bill.com entered the segment in May 2021 by acquiring Divvy for USD 2.5 billion. 

Business expense cards
Non-card expense management platforms
Business payout management platforms
In House Development
M&A
Partnership
Investment
PayPal
SAP
Stripe
American Express (Amex)
Zoho
Quickbooks
Certify
Elmo cloud
Global Payments
FIS
Bill.com
Revolut

Notable Investors


No investor data is available

Funding data are powered by Crunchbase
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