The financial technology industry is seeing a slump in investment, but one startup is defying the odds. CleverCards, a Dublin-based firm, has secured an impressive 8 million euros in funding to tackle the issue of employees abusing corporate expenses. By leveraging technology, CleverCards aims to provide companies with a digital platform linked to configurable expense cards to give them better control over how their employees use corporate payment cards.
A 2016 global survey of CFOs revealed some shocking findings, including improper expense report requests for things like a doggie day spa, taxidermy services, dance classes, a side of beef, and even a welder. These strange requests highlight a harsh reality for many companies – the inability to trust employees’ judgment when it comes to corporate expenses. CleverCards CEO Kealan Lennon recognized this issue and developed a solution to address it.
Rather than simply issuing corporate credit cards to employees, CleverCards provides businesses with prepaid cards that can be configured to only be used by specific staff members and block certain transactions deemed inappropriate. This level of control allows companies to ensure that the right employee is using the card for the right purposes. Lennon emphasized that it’s all about finance control and enabling businesses to have a digital platform that offers configurable payment options with the press of a button.
CleverCards recently raised 8 million euros in an investment round led by strategic investor Pluxee. This brings the total funds raised by CleverCards to over 28 million euros. Pluxee, a leading employee vouchers and benefits platform, is listed on the Euronext stock exchange in France with a valuation of 4 billion euros. The partnership with Pluxee highlights CleverCards’ commitment to revolutionizing the corporate expenses sector with innovative solutions.
Impressive Clientele and Industry Recognition
Since its founding in 2019, CleverCards has attracted over 10,000 businesses as customers, including major players like eBay, PaddyPower, Betfair, Accenture, Microsoft, and Apple. The startup has also expanded its reach to public sector organizations, such as partnering with the U.K. government to facilitate social welfare payments for individuals facing financial challenges. CleverCards’ use of artificial intelligence for identity verification checks has been instrumental in preventing fraud and ensuring secure transactions.
Challenges in the Fintech Market
Lennon acknowledged the tough market conditions in the fintech industry, characterized by a slowdown in dealmaking and fundraising. Despite these challenges, CleverCards has managed to outperform payment tech giants like Adyen and Stripe, winning business against them. This success speaks to CleverCards’ innovative approach and the value it offers to businesses seeking better control over corporate expenses.
With the fresh funding secured, CleverCards plans to expand its business, scale its products, and explore new opportunities in the market. The startup has also appointed five new non-executive directors with expertise in payments technology to further strengthen its leadership team. CleverCards is poised for growth and aims to continue disrupting the corporate expenses sector with cutting-edge solutions and a customer-centric approach.