DiviPay, a Sydney startup that offers an all-in-one spend management system for small businesses, is set to advance with its aspirations following a $20 million Series A raise.
Founded by Daniel Kniaz and Russell Martin, DiviPay is Australia’s first all-in-one virtual corporate cards and expense management solution that now serves more than 1,000 companies. Some of their biggest clients include Canva, Eucalyptus, Michael Hill International, Superhero and Slater & Gordon.
DiviPay CEO Daniel Kniaz said the capital will be used on product development, expanding the company into new international markets and increasing the headcount in 2022.
“I’m really proud and excited about DiviPay’s latest funding round because it gives us an opportunity to work with some great investors in fintech to further develop our mission and to rapidly expand our footprint in terms of team, product and location,” told MrKniaz.
“With tech at the forefront of recent changes in the working world, 2022 was always going to be a big year for DiviPay. This funding round allows us to make an even more significant impact on the market – fintech is definitely the place to be right now.”
The round was led by an undisclosed growth equity investor focused on private global fintech and included the participation of Global Founders Capital and Rapyd Ventures—Rapyd’s new venture capital arm.
“We loved how DiviPay entered the expense management space focusing on an easy-to-use, powerful software product and on that foundation we believe the opportunities for expansion are endless. We are excited to back the team in their next phase of growth.” Explained Tito Costa, Partner at Global Founders Capital.
The round also included backing from prominent founder RaffaelJohnen of Auxmoney, the largest credit market leader on the European continent. Guy Pearson, the founder of Tiger Global-backed accounting and client engagement platform, Practice Ignition, also participated in the round.
The latest round of funding follows several recent raises including $1.7 million in a 2021 round led by ANZ Bank’s venture capital arm 1835i, which DiviPay used to bolster its marketing, sales and engineering teams.
That same backer also led a $2.3 million round in 2019, which attracted investors such as Seed Space ventures and former Pepper Money CEO Patrick Tuttle. The 2019 funding allowed DiviPay to build its engineering team and execute its product vision. And, in 2016, DiviPay received $100,000 in funding from H2 Ventures when they joined the fintech accelerator program.
What Is A Virtual Corporate Card?
Virtual corporate cards are a convenient and modern alternative to traditional forms of business expense payment methods made by employees.
While a virtual corporate card functions in the same manner as a normal debit or credit card, they are a digital representation of the physical card and stored in your smartphone instead of in your wallet.
By using virtual cards, businesses can efficiently distribute funds to employees, have full control of business spending, set budgets and create spending rules to restrict merchants and transaction amounts.
Additionally, DiviPay’s virtual debit cards seamlessly link to an intuitive platform that provides a real-time transaction feed. With the ability to issue unlimited virtual corporate cards in seconds, virtual corporate cards eliminate credit card sharing and reduce the need for staff reimbursements. As the virtual cards exports all expense data into the integrated accounting software, clients save hours of manual labour and expense reporting.
“DiviPay helps finance leaders control who can spend company funds, how much they can spend, and where they can spend it – we deliver transparency, security and autonomy in expense management,” said MrKniaz.
In the past year, DiviPay has reported a 300% growth and received the “Best Payment Innovation” award at the 2021 Finder Awards.
This article was sourced from DiviPay raises $20 million Series A to fortify its full-stack spend management suite for SMEs.