Teampay Labs Inc., a startup helping companies manage their business expenses more efficiently, has closed a $47 million funding round.

Announced today, the Series B round was led by returning Teampay investor Fin Venture Capital. Mastercard Inc., Proof Ventures, Trestle and Espresso Capital participated as well.

“Teampay is entering the second half of 2022 well-positioned for future growth, as companies of all sizes strive to manage spending more strategically in the current uncertain economic environment,” said founder and Chief Executive Officer Andrew Hoag. “With this latest funding, we will continue to capture the market with our best-in-class solutions for company spend, while also growing our enterprise offering to match demand.”

New York-based Teampay provides a platform that helps companies manage business expenses. An organization’s finance team can use the platform to create rules that regulate how internal budgets are spent. A finance team could, for example, create a rule specifying that employee requests to purchase cloud instances are automatically approved when certain conditions are met. 

Teampay offers its budget management features alongside a chatbot called Purchase Assistant. According to the startup, Purchase Assistant can automatically process employee purchase requests to save time for finance professionals. The chatbot extracts the key details of each purchase request, evaluates them and approves the transaction if it complies with company’s internal budget rules.

To help finance teams manage employee purchases, the platform provides the ability to issue virtual payment cards. According to the startup, the feature makes it possible to create a separate virtual card for every purchase. This approach to procurement simplifies spend management in certain respects: finance teams can set card spending limits to ensure purchases don’t exceed internal budgets. 

Teampay also offers another payment card, Catalyst by Teampay, that is geared towards executives. It launched Catalyst in 2021 through a collaboration with Mastercard. 

The company will use the proceeds from its latest funding round to expand its partnership with Mastercard. In particular, the companies will explore opportunities to develop new features for the Catalyst card. Additionally, Teampay will add more payment features to its platform as well as grow its sales and marketing teams. 

“As corporate finance departments continue to modernize their processes to better reflect the way work gets done today, we see considerable opportunity in the growing spend management space,” said Fin Venture Capital general partner Peter Ackerson. “Teampay continues to innovate the Office of the CFO tech stack far beyond existing legacy approaches, giving CFOs unparalleled visibility and control of corporate spend.”

The additional funding will better position Teampay to compete in the crowded business expense management market. Ramp Business Corp. raised $750 million in March for its namesake cloud platform, which companies use to manage employee purchases and perform related finance tasks. Divvy Inc., another venture-backed player in this market, earlier closed a $165 million funding round backed by Insight Venture Partners, NEA and other prominent investors. 

Image: Teampay