Netherlands-based Payhawk, a startup specializing in corporate transactions, has indicated its intentions to engage in mergers and acquisitions to expand its presence in the corporate expenditure management sector and compete with industry giants such as SAP.

The startup has expressed interest in acquiring companies in the early stages of series A funding, which refers to startups that have already secured a substantial round of investments.

In an interview with a reputable source, Hristo Borisov, the CEO and co-founder of Payhawk, emphasized the superior “product-market fit” of his company compared to competitors, some of which have attained multibillion-dollar valuations by distributing complimentary corporate cards to other startups.

“We perceive an opportunity to establish much stronger unit economics in this sector,” Borisov mentioned in the interview at the Money 20/20 event in Amsterdam, Netherlands. “We are convinced that companies like Brex and Ramp have yet to discover a robust product-market fit for the potential of this market.”

Payhawk operates as a platform for corporate expense management, issuing intelligent cards for employees of clients to conduct transactions and monitor their spending. Among its clientele are Decathlon and Vinted.

Payhawk has reported substantial growth in the initial quarter, with global revenue increasing by 86% year-over-year, while sales soared by 127% in the UK, constituting 27% of the total revenue.

The company’s growth was fueled by a significant uptick in the number of clients. Over the three months ending in March, the firm observed a 58% rise in customers compared to the previous year, with the UK once again playing a pivotal role.

Currently, Payhawk aims to capitalize on this growth through mergers and acquisitions, seen as key to unlocking future prospects according to Borisov.

“Numerous businesses that received funding over the last couple of years are now contemplating strategic choices,” Borisov stated. “This is a proactive step for us. We are actively seeking to acquire companies.”

“Our vision entails offering a unified platform that caters to all your corporate spending needs through a single provider,” Borisov remarked. “We anticipate some level of market consolidation.”

Borisov clarified that there are no intentions to acquire companies in the U.S. market, citing an existing partnership with American Express under the credit card giant’s Sync Commercial Partner Program.

When questioned about prospects of securing new venture funding to realize its goals, Borisov confirmed that Payhawk is consistently engaged in discussions related to fundraising.

He mentioned that the company’s recent growth has attracted interest from external investors, following a challenging period in 2022 and early 2023.

“Fundraising is an ongoing process,” he emphasized. “It’s not driven by immediate financial needs. The most unfavorable time to raise funds is when you are in dire need of capital.”

“We have daily interactions with investors, gauging market sentiments,” Borisov added. “Partners who share our vision align with our approach.”

Borisov anticipates a potential new round of venture funding either in the current year or the following year. Payhawk, backed by investment firms like Lightspeed, Greenoaks, and Earlybird, has accumulated $240 million in funding to date.

His ultimate ambition is to transition Payhawk into a publicly traded entity, although no specific timeline has been set for the company’s market debut.

“Our primary goal is to go public with the company, and this is our central focus,” Borisov affirmed. “The timing will largely depend on market conditions and realities.”