As the financial technology industry faces a slump in investment, one startup has managed to defy the odds and secure 8 million euros in funding. CleverCards, a Dublin-based firm, is leveraging technology to address the issue of employees abusing corporate expenses. With a digital platform linked to configurable expense cards, CleverCards is offering a solution that allows companies to have control over how their employees use corporate payment cards.
A 2016 global survey of CFOs revealed some shocking improper expense report requests made by employees, including expenses for a doggie day spa, taxidermy services, dance classes, a side of beef, and even a welder. These strange requests highlight a harsh reality for many companies – the inability to trust an employee’s judgment when it comes to corporate expenses. CleverCards CEO Kealan Lennon recognized this problem and set out to tackle it head-on.
Unlike traditional corporate credit cards that employees can use freely, CleverCards offers prepaid cards that can be configured to only be used by specific staff members. This level of customization allows businesses to restrict certain transactions that are deemed inappropriate. Lennon emphasizes that businesses want to ensure that the right employees are using the cards for designated purposes. He describes CleverCards as a tool for finance control, offering a unique and innovative approach to managing corporate expenses.
CleverCards recently announced a successful funding round of 8 million euros, with strategic investor Pluxee leading the investment. This brings the total amount raised by CleverCards to over 28 million euros. Pluxee, a renowned employee vouchers and benefits platform, spun off from French food catering firm Sodexo and is listed on the Euronext stock exchange with a valuation of 4 billion euros. The partnership between CleverCards and Pluxee signifies strong support for the startup’s innovative approach to expense management.
Since its establishment in 2019, CleverCards has onboarded over 10,000 businesses as customers, including industry giants like eBay, PaddyPower, Betfair, Accenture, Microsoft, and Apple. The startup has also extended its services to public sector organizations, showcasing the versatility and adaptability of its platform. In addition to serving corporate clients, CleverCards collaborated with the U.K. government in 2022 to facilitate social welfare payments to individuals facing financial difficulties.
Kealan Lennon acknowledges the challenging climate in the fintech industry, with many companies struggling to secure funding and make significant advancements. Despite the tough competition from payment tech giants like Adyen and Stripe, CleverCards has managed to carve out a niche for itself and win business against larger players. Lennon attributes this success to the unique value proposition offered by CleverCards and the increasing demand for more agile and customizable payment solutions.
With the latest infusion of funds, CleverCards plans to expand its operations, enhance its product offerings, and explore new opportunities in the market. The startup has also appointed five new non-executive directors with extensive experience in payments technology to support its strategic growth initiatives. CleverCards aims to continue disrupting the corporate expense management landscape and establishing itself as a leading provider of innovative payment solutions.
CleverCards’ innovative approach to managing corporate expenses through a configurable payments platform has garnered significant attention and support in the fintech industry. With a strong emphasis on customization, control, and efficiency, CleverCards is poised for continued growth and success in the evolving landscape of financial technology.
Leave a Reply