Candex, a leading vendor management and tail spend solutions provider, is pleased to announce a Series B investment of $45 million, led by Growth Equity at Goldman Sachs Asset Management (Goldman Sachs) with new investor WiL (World Innovation Lab) who both join existing investors Altos, NFX, Craft, JP Morgan, American Express and Edenred. This brings the company’s total amount raised to $85 million. The capital will be used to support the company’s high growth and expand into new markets.
The investment from Goldman Sachs comes from its $5.2B growth equity fund, dedicated to investing in high-growth businesses with strong market positioning and durable business models. Clare Greenan, of Goldman Sachs, will join Candex’s Board of Directors to advise on the company’s next stage of growth. New investor WiL (World Innovation Lab) will help Candex accelerate expansion into the Japanese market.
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Tail spend, usually defined as the 90% of a company’s vendors that represent less than 10% of spend, creates operational and compliance challenges for large companies. Candex enables its customers — which include Sanofi, HSBC, Dell, Eaton, Roche, L’Oreal, Colgate and Danone, among others — to use their full P2P buying process while reducing the vendor onboarding and payment cycles from several weeks down to a few minutes.
“Goldman has been using Candex to tackle some of their own tail spend challenges for the last couple of years, and we are thrilled to strengthen that relationship and bring them on as a major investor,” said Jeremy Lappin, CEO of Candex. “Candex has been doubling its size every year over the last four years and is on track to more than double revenues again this year. With this $45 million investment and a shared vision about how our unique offering will revolutionize the way businesses transact, Goldman is adding another clear vote of confidence in the strength and potential of our business.”
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“Candex creates incredible value for its clients by solving one of procurement’s greatest challenges. I have been following the company closely for years and am excited to finally join them on their journey to revolutionize tail spend management. Jeremy and his team have built a world-class solution and demonstrated their ability to serve the world’s most demanding businesses year after year. We see remarkable potential in Candex and are thrilled to join forces with existing investors to help accelerate Candex’s global expansion and enhance its product offerings.” said Clare Greenan, a Vice President in the Growth Equity business within Goldman Sachs Asset Management.
