Less than two months after the announcement a new valuation of $9.2 billionTripActions said yes today secured $400 million in credit facilities from Goldman Sachs and Silicon Valley Bank (SVB).
In particular, TripActions has secured a warehouse debt facility from Goldman Sachs with a $200 million commitment and the potential to “stretch” to $300 million if needed, said EVP Michael Sindicich, head of TripActions Liquid. The company also secured a $100 million asset-backed loan facility led by Silicon Valley Bank.
TripActions expanded from its core travel expense management offering and accelerated the launch of its business card and general expense management offering, Liquid, in March 2020. Business travel had come to a standstill due to the outbreak of the COVID-19 pandemic, driving the company’s revenue to zero. At that point, TripActions began insuring businesses by funding their accounts with capital and giving them the option to pay back the company at the end of their statement period or billing cycle (typically a 30-day time frame).
Since that launch, the company’s Liquid offering has grown exponentially, with users including payments giant Stripe, Canva, Carta, Toast, Patreon, Momentive.ai, Lyft, venture firm and investor Andreessen Horowitz (a16z), Loom, Databricks, and VaynerMedia. By fully committing to the expense management space, TripActions competes with Brex, Ramp and Airbase, among others.
“We continue to grow at a rapid pace,” Sindicich told ExamPaper in an interview. “The facilities give us more ammunition and purchasing power to bring in and fund more businesses as we scale.”
According to Sindicich, TripActions saw spending volume on its platform increase by 400% or 5x in the third quarter. The company saw a 4.2x year-over-year revenue growth in the third quarter, primarily driven by its Liquid offering, he added. That revenue comes from a mix of interbank and subscription fees.
There’s no question that such growth factored into TripActions’ ability to raise an “up” round — $154 million in equity and $150 million in a structured finance deal — in an environment where many startups are either up go or round, if they are able to raise at all.
According to Sindicich, most new TripActions customers sign up for business travel and TripActions Liquid to do their expense management and travel payments.
“Lots of expense management companies have been set up over the last few years and I think our unique value proposition is that we can combine the travel, the corporate card and the expense part because so much of the employee expense has to do with some way, shape or form with a journey,” he told ExamPaper.
In late September, TripActions reportedly filed confidentially to go public in the second quarter of next year at a valuation of $12 billion. When asked about those plans this week, a company spokesperson said: “We are doing our best to be ready to go public when conditions are right and markets reopen, but we cannot predict when that will be. will be.”
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