YC alum Mendel, a ‘Ramp for LatAm enterprises,’ raises $35M Series B

Summary

Mexico City-based Mendel has raised $35 million in a Series B round of funding, it tells TechCrunch exclusively. Corporate spend management platform Mendel last raised in December 2021 — a $15 million Series A round and $20 million in debt — after participating in Y Combinator’s Winter 2021 cohort. With this latest capital infusion, the startup has brought in a total of $60 million in equity funding and $50 million via a credit facility. Mendel’s mission is straightforward: to reinvent corporate spend management by automating most of the operations for an enterprise CFO that are currently done manually. Or put even more simply, it wants to be a one-stop shop for all B2B spend. Its offering integrates expense management, payments, and corporate travel. “Our goal is to give CFOs and finance teams in Latin America real-time visibility and control over their spend — be it employee expenses, vendor payments, or business travel bookings,” said co-CEO and co-founder Alan Karpovsky. Karpovsky and Alejandro Zecler (who both previously founded and sold other startups) started Mendel in early 2021, and Helena Polyblank (CPO) and Gonzalo Castiglione (CTO) later joined as co-founders. Mendel declined to reveal valuation, with Karpovsky saying only the round reflected “a significant step up” from the company’s previous raise. The company also declined to reveal hard revenue figures, with Karpovsky noting only that its annual recurring revenue (ARR) grew almost 2.5x year-over-year, with gross margins of over 75%. “We’re not yet profitable, but we anticipate reaching profitability by late 2025,” he told TechCrunch. Base10 Partners led Mendel’s latest round, which included participation from new investors PayPal Ventures and Endeavor Catalyst, as well as existing backers Infinity Ventures, Industry Ventures, and Hi.vc. SAP Concur meets AMEX The company says that since it is “software first” and focused on enterprises, it is able to charge recurring SaaS fees rather than relying excl...