Taulia Breaks Its Marketing Silence, Announces Q4 Momentum and More

Taulia Q4 results Argus/Adobe Stock

Taulia reported record fourth quarter results Monday, with new bookings growth up 219%. The financial supply chain solution company said the new customers it gained in the fourth quarter will add 50,000 suppliers in 71 countries, as well as $65 billion in spend to the existing Taulia platform.

Taulia reported it added two of the “world’s top 10 retailers” as customers in Q4 but did not disclose the names of the companies. It also said it added a leading pharmaceutical manufacturer and one of the largest hospital networks in the United States. No specific names were disclosed.

Additional milestones for Taulia in Q4 included making more than $50 billion in financing available to suppliers across the globe and retaining its 100% customer renewal rate.

The Q4 news comes about a week and a half after Taulia announced it had raised $46 million in financing led by Zouk Capital.

Taulia has also named some new people to top executive positions this month. Most recently it announced Barbara Holzapfel as chief marketing officer for the firm. Holzapfel previously worked as CMO for Addepar, a financial services technology platform. Taulia also recently reported John Varughese would be the new chief financial officer for the company. Varughese formerly worked at Perella Weinberg Partners.

Here is our quick take on this momentum announcement:

  • Taulia appears to be coming out of a prolonged “quiet period” in which it did not release much news on customers, products, adoption, etc. While it’s useful to understand that the business appears quite healthy and is firing on all cylinders, we’re even keener to delve into adoption trends among suppliers and trade financing generally — everything from onboarding strategies to discount uptake to the topic of self-funding versus third-party funding to the range of APRs/rates (and how they impact adoption). At Taulia Connect this winter, we hope to get answers to some of these questions to better understand the “supply side” of the Taulia equation.
  • Taulia appears to be on a roll from a customer acquisition perspective — and is cleverly evolving its position away from a technical e-invoicing/P2P solution combined with dynamic discounting to putting itself at the core of the fintech movement with a broader set of capabilities.
  • The appointments of Holzapfel and Varughese as CMO and CFO suggest that Taulia might be getting closer to an IPO. Still, given market conditions, we think the probability of a public offering is more dependent on external factors than internal at this point. (Taulia clearly has other options as well, should it chose to raise additional rounds of capital or enter into a more strategic type of exit or liquidity event.)

Our team noted previously following the funding announcement that the investment was good news for the sector. Here’s what David Gustin, editor and co-founder of Trade Financing Matters, had to say on the previous news:

“During this nervous start to 2016, it’s encouraging to see Taulia secure more capital to fund its growth. Cost of capital, equity and financing have all become more acute for many reasons. The partnership with Zouk is interesting, given Zouk’s focus on investments with a sustainable impact. That needs to be explored.”

And here’s what Jason Busch, founder and head of strategy of Spend Matters, had to say:

“While other providers competing in this broad sector also bring expertise and relationships across various forms of payables and receivables financing, we should not discount the importance of underlying systems and buyer/supplier integration to enable the sustainable and lowest risk financing of trade activities. This is where Taulia excels, and with significant additional capital to fuel growth and investment from the latest round, the firm will be able to tell an increasingly compelling story that not only appeals to procurement, accounts payable, treasury and CFOs but IT organizations as well.”

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