Teampay provides a purchasing platform that issues virtual and physical cards, handles invoices and reimbursements, and automates workflows to keep employees in policy while reconciling transactions into customers' accounting systems. The company emphasizes employee-friendly purchasing combined with finance controls to eliminate unauthorized and out-of-policy spending and increase visibility for finance teams. Teampay offers a digital corporate card (Catalyst by Teampay) powered by the Mastercard network and integrates payment methods with built-in controls. Founded in 2016 and headquartered in New York City, Teampay has focused on serving high-growth companies and has tripled headcount in the last 12 months. The company plans to deepen its accounts payable solution, expand cross-border payments and international payment capabilities, and accelerate its enterprise offering. Teampay will also invest in go-to-market activities, sales and marketing, and continued hiring to support larger account needs. Teampay builds spend-management software aimed at midmarket companies to help them control bank accounts and manage outflows across formats (ACH, virtual cards, etc.). The company emphasizes software fees as its primary revenue source rather than interchange, with the ability to derive more spend-based revenue over time. Teampay has seen strong usage and monetization growth: annual recurring revenue (ARR) is up 320% since its Series A and total spend managed is up 800%. The pandemic has shortened its sales cycle roughly in half and attracted larger customers. It competes with offerings such as Brex, Ramp, Divvy, Airbase and legacy products like Concur and Expensify. Management has used opportunistic extension capital to accelerate growth ahead of a larger, traditional Series B. Teampay provides a platform that gives employees a streamlined interface to buy goods, tools, and services while keeping purchases within defined company policy. It acts as a collaboration software layer on top of a company’s existing card infrastructure so customers don’t have to switch card programs. The company targets larger enterprises with complex spend controls and counts customers including Wistia, Chime, Mixpanel, and RiskIQ. Since launching the platform Teampay has been hiring in sales and engineering and added senior executives including a VP of Finance, VP of Marketing, and head of sales. The company reported double-digit month-over-month growth in 2018 and recently raised a $12 million Series A to support expansion. Planned uses for the capital include expanding partnerships and integrations (for example with IT ticketing systems) and increasing sales and marketing. Teampay issues virtual credit cards to every employee and pairs those cards with approval workflows, procurement policy enforcement, and vendor analytics. The platform integrates with Slack and Google Apps and will add a Microsoft integration shortly. Its analytics surface top spending vendors and recurring subscriptions so procurement can negotiate rates and eliminate wasted expenses. Teampay targets mid-market companies of roughly 200–1,000 employees that are too small for a full purchasing department but too large to rely on the CEO’s card. Founder and CEO Andrew Hoag built the product from procurement problems he encountered at prior startups, and the company reports several paying customers on the platform. Early customer data shows roughly half of employee transactions are recurring, which the company flags to reduce waste.

Total raised

$68M

Funding rounds

4

Latest round

Series B

Latest activity

Nov 2022