Tradeshift Raises $75M in Series D Funding Round

FusionOps funding

Tradeshift raised $75 million in a recent Series D funding round, bringing the P2P platform provider’s valuation up to nearly $600 million. Data Collective led the latest funding round, and other investors included HSBC, American Express Ventures, CreditEase Fintech Investment Fund, Notion Capital and Pavilion Capital.

“The new funding fuels Tradeshift’s growing application, platform and business-to-business marketplace ecosystem development,” the company said in a press release. “Tradeshift will use the funding to serve a wider range of global customers as it expands further into trade financing, spend and receivables management, lending and payments. It will also invest more resources to boost user adoption and facilitate rapid growth as it scales its sales, product and engineering operations.”

Tradeshift, which now has a user base of more than 800,000, has reportedly raised $205 million total this year and is on track to bring in $50 million in revenue.

Spend Matters Take

According to Pierre Mitchell, chief research officer at Spend Matters, the financing of corporate spending can be just as lucrative as the internal efficiency and effectiveness of that spending process.  

“This is why you see AmEx and HSBC involved in the latest Tradeshift funding round,” Mitchell said. “While the market is littered with the bodies of failed efforts by financial services firms trying to use procurement and payables technology as a pipeline into their trade financing solutions, execution is still key.”

 Mitchell also questions the exact valuation of Tradeshift, which he says is “aspirational” based on its assumptions of projected revenues. He also wonders to what extent Tradeshift’s focus on an open underlying platform-as-a-service (PaaS) will help it eventually outpace a software-as-a-service (SaaS) provider like Coupa, which he said has “out-executed” Tradeshift to date, with revenues estimated at roughly $100 million and a valuation of $1 billion.

“The market will decide,” Mitchell said. “Ultimately, these firms will increase their odds of success by helping their customers deliver value to their organizations, by better managing that external spend.”

Trade Financing Matters Take

According to David Gustin, managing editor of Trade Financing Matters, Tradeshift has wisely taken a point of view that the route with finance is not a one-size-fits-all approach, since the firm has also publicly partnered with C2FO, a marketplace for working capital. Citibank has also built an app on the Tradeshift platform, albeit in a limited manner for certain logistics invoices.

“The reality in the early pay space is that, with more than $2 trillion of business credit outstanding at any time, most cloud-based financing over B2B networks that offer just-in-time financing is only doing a trickle of that $2 trillion volume,” Gustin said. “It will be interesting to see if and how Amex and HSBC plan to deploy Tradeshift.”


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