Business payment services company Candex has raised $3.5 million of series seed funding from Edenred Capital Partners, Partech Ventures, Advisors.Fund, Camp One Ventures, NFX, Tekton Ventures, Big Sur Ventures and fintech angel Mark Goines. The financing positions Candex to accelerate its business in Fortune 500 customers and beyond.
Companies are taking advantage of the gig economy and using more vendors than ever to compete and stay nimble. In the typical large enterprise organization, administration layers across departments inefficiently cope with the 90 per cent of tail service vendors that account for only five per cent of spend. Sometimes the administrative costs exceed what is actually paid.
“It is amazing how much time and effort gets wasted when a typical organization tries to work with small vendors,” said Candex co-founder and CEO Jeremy Lappin. “Candex brings the speed and ease of consumer payment apps to large businesses, leveraging a private blockchain to ensure compliance and massively streamline financial system records.”
Candex allows creation of private eMarketplaces where employees engage with approved vendors through a chat interface, track activities and performance, and authorize payments below $100,000 with a few clicks. It empowers companies to remove thousands of vendor records from their financial systems and gives them a single counterparty for tax and compliance purposes.
“Candex fulfills stringent compliance requirements while also providing value to line managers,” says Philip Bodell of First Data. “Their demonstrated success serving many companies, including our own, is a key reason we invited Candex to join the Commerce.Innovated program.”
Enterprises that work with Candex are freed from repetitive admin burdens in vendor setup, payment exchange, taxes, and audits. Candex charges a small percentage of each payment and works with existing approval methodologies across hundreds of entities.
“The Candex eMarketplace approach is a brilliant solution for the tail spend needs of today’s enterprise, and this financing is perfectly timed to enhance the company’s leadership position,” says new Candex board member Mark Goines.