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Singapore-based startup Volopay, which aims to build a “financial control center” for business, announced on January 18 that it has raised $ 2.1 million in seed round investment. .. The round is led by Tinder co-founder Justin Mateen and is attended by angel investors such as Soma Capital, CP Ventures, Y Combinator, VentureSouq and founding members of Razorpay.
The funds will be used for recruitment, product development, strategic alliances and Volopay’s overseas expansion. It plans to launch a business in Australia by the end of January 2020. Currently, it has about 100 clients such as Smart Karma, Dathena, Medline, Sensorflow, and Beam.
Volopay, co-founded by Rajith Shaiji and Rajesh Raikwar in 2019, participated in the Y Combinator accelerator program in 2020. CEO Shage, who worked for a number of fintech companies before starting a business, was particularly dissatisfied with how to collate operating expenses across multiple countries’ accounting departments and launched Volopay. .. Both Mr. Shage and Mr. Lakewar have seen many companies, especially startups and small businesses, struggle to track various types of expenses, such as subscriptions and payments to vendors.
Volopay’s clients are mostly companies with 15-150 employees in the tech industry. Volopay’s platform incorporates features such as multi-currency corporate cards (issued by VISA), domestic and overseas bank transfers, automatic payments, expense management software, accounting software, etc., allowing quick matching of exchange fees and expenses. ..
To expedite deployment, Volopay has introduced the Airwallex API. With that corporate card, you can get up to 2% cash back on software subscriptions, hosting, and overseas business trips, which Volopay calls the three major spending items of tech companies. In November 2020, during the pandemic of the new coronavirus (COVID-19), a card division was established for corporate cards to support small and medium-sized enterprises with a fluid response.
Compared to traditional margin transactions such as credit cards and working capital loans, Volopay’s credit line, which can also be accepted with VISA corporate cards, is attractive with a fixed fee structure according to the amount of credit used. Says Shage. In other words, the company can know in advance how much to borrow, which makes it easier to manage cash flow. The average credit line offered by Volopay is about $ 30,000.
Since TechCrunch interviewed in July 2020, Volopay has seen a 70% increase in total funding flow on the platform month-on-month, Sage said. The company has also launched two new features. It is an invoice payment function and credit provision that allows clients to send money domestically and internationally at low exchange rates and low fees. This bill payment feature currently handles approximately 40% of Volopay’s total payments. On the other hand, credit products account for 30% of card usage.
Mr. Shage told TechCrunch that Volopay has decided to move into Australia. In addition to being a much larger market than Singapore, “Australian SMEs are very accustomed to using paid software to streamline their internal operations and expand their businesses.” He also points out that Australia currently does not have a provider like Volopay that provides both spending management and credit to SMEs.
Rachel Maga is a technology journalist currently working at Globe Live Media agency. She has been in the Technology Journalism field for over 5 years now. Her life’s biggest milestone is the inside tour of Tesla Industries, which was gifted to her by the legend Elon Musk himself.