Fintech
TripActions lands $400M credit as expense management rivals feel growing pains
December 8, 2022
TripActions, a corporate travel and spend-management platform, saw revenue evaporate at the start of the pandemic. But as business travel picked up, so did its revenue and ability to attract fresh capital.
On Thursday, the Palo Alto-based company secured a $400 million credit facility, consisting of an up to $300 million warehouse debt facility from Goldman Sachs and a $100 million asset-backed lending facility led by Silicon Valley Bank. Warehouse financings are collateralized by loans made by fintech companies to their customers, as TripActions does via its corporate credit card.
The new credit facilities come less than two months after TripActions raised $304 million in debt and equity at a valuation of $9.2 billion, a significant step up from the $7.5 billion valuation the company received during its previous financing a year prior. The latest round comprised $154 million in equity from existing investors, including Andreessen Horowitz and Premji Invest, and a $150 million structured equity financing led by Coatue.
TripActions doesn't plan to stop there. The company has filed confidential paperwork with the SEC to go public in 2023, Insider reported in late September.
The company is finding itself in a strong position at a time when many other fintech specialists are laying off employees. Rival corporate management company Brex laid off 11% of its staff in October.
"TripActions might be a special case because of their exposure to travel," said Rudy Yang, a fintech analyst with PitchBook. They laid off staff at the beginning of the pandemic and were likely more prudent with their expenses than other fintech companies, he said.
Companies that provide corporate cards and expense management, such as TripActions, Brex and Ramp, will likely continue to generate demand.
"I think this space will be important in the coming year as SMEs need to manage expenses and deliver more profitable bottom lines," Yang said, referring to small and medium-sized businesses.
TripActions customers include Stripe, Zoom, Canva, Carta, Toast, Lyft, Notion and Databricks.
Featured image by Olena Yakobchuk/Shutterstock
On Thursday, the Palo Alto-based company secured a $400 million credit facility, consisting of an up to $300 million warehouse debt facility from Goldman Sachs and a $100 million asset-backed lending facility led by Silicon Valley Bank. Warehouse financings are collateralized by loans made by fintech companies to their customers, as TripActions does via its corporate credit card.
The new credit facilities come less than two months after TripActions raised $304 million in debt and equity at a valuation of $9.2 billion, a significant step up from the $7.5 billion valuation the company received during its previous financing a year prior. The latest round comprised $154 million in equity from existing investors, including Andreessen Horowitz and Premji Invest, and a $150 million structured equity financing led by Coatue.
TripActions doesn't plan to stop there. The company has filed confidential paperwork with the SEC to go public in 2023, Insider reported in late September.
The company is finding itself in a strong position at a time when many other fintech specialists are laying off employees. Rival corporate management company Brex laid off 11% of its staff in October.
"TripActions might be a special case because of their exposure to travel," said Rudy Yang, a fintech analyst with PitchBook. They laid off staff at the beginning of the pandemic and were likely more prudent with their expenses than other fintech companies, he said.
Companies that provide corporate cards and expense management, such as TripActions, Brex and Ramp, will likely continue to generate demand.
"I think this space will be important in the coming year as SMEs need to manage expenses and deliver more profitable bottom lines," Yang said, referring to small and medium-sized businesses.
TripActions customers include Stripe, Zoom, Canva, Carta, Toast, Lyft, Notion and Databricks.
Featured image by Olena Yakobchuk/Shutterstock
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