TradeShift raises $240M in new funding to accelerate growth of its supply chain payments and marketplaces
We wrote about TradeShift back in November 2018 when trade platform launched Tradeshift Pay and partnered with HSBC and major banks to solve the $9 trillion global commerce problem. This week, TradeShift announced it has $240 million in equity and debt from a combination of existing and new investors with more than two-thirds already closed. The funding will help accelerate growth and set the company on a direct path to profitability in the near future.
The company, which has reported more than 2 years of strong growth in quarterly revenue, recorded its best-ever year in 2019, including more than 60% revenue growth, more than 300 enterprise deals closed (the average deal size was doubled), and more than 40% of the total cumulative transaction volume across its platform came in the last 12 months, continuing the rapid growth of the Tradeshift network.
The additional capital from investors will be used to further fuel strong momentum Tradeshift has seen across core product lines, including Tradeshift Pay, which was ranked in 2019 as the strongest ePayables SaaS solution in the industry by analyst firm Ardent Partners, and Tradeshift Go, with an additional over 200 new customers signed in 2019. Finally, the funding will be used for accelerating its large and growing network finance program, providing much needed liquidity to companies in 100+ countries.
Founded in 2010 by Christian Lanng, Gert Sylvest, and Mikkel Brun, Tradeshift is the world’s largest business commerce platform that connects buyers and sellers. Tradeshift connects over 1.5 million companies across 190 countries, processing over half a trillion USD in transaction value, and its supply chain marketplaces contain more than 35 million SKUs. Procurement, treasury, and AP departments use Tradeshift’s supply chain payments and marketplaces to digitally transform their supply chain. With the company’s unique app platform, they have access to more than 200 third-party apps and can also build their own applications. Tradeshift is headquartered in San Francisco.
“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.”
Tradeshift’s drive towards profitability will also include a rigorous focus on cost control measures and restructuring global cost to take better advantage of Tradeshift’s global shared services and partners. An important part of this process will be to ensure that sufficient resources are allocated to high performing areas of the business.
“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.”