Mendel, a Mexico City-based corporate spend management platform, has successfully raised $35 million in a Series B funding round, bringing its total equity funding to $60 million, complemented by an additional $50 million secured through a credit facility. This latest investment underscores Mendel’s commitment to transforming how enterprises in Latin America manage their expenditures.
A Mission to Modernize Financial Operations
Founded in early 2021 by entrepreneurs Alan Karpovsky and Alejandro Zecler, Mendel aims to automate the traditionally manual operations handled by enterprise CFOs. By integrating expense management, payments, and corporate travel into a unified platform, Mendel provides finance teams with real-time visibility and control over company spending. This comprehensive approach addresses the complexities of managing employee expenses, vendor payments, and business travel bookings, all within a single system.
Strategic Growth and Financial Performance
Since its inception, Mendel has demonstrated significant growth. The company’s annual recurring revenue (ARR) has nearly doubled year-over-year, achieving gross margins exceeding 75%. While not yet profitable, Mendel anticipates reaching profitability by late 2025. The recent funding round was led by Base10 Partners, with participation from new investors PayPal Ventures and Endeavor Catalyst, alongside existing backers Infinity Ventures, Industry Ventures, and Hi.vc.
A Unique Position in the Market
Mendel distinguishes itself by focusing on large, complex organizations that require multi-entity, multi-currency, and deep ERP integrations. This focus allows the company to address country-specific regulations, such as tax codes and invoicing requirements, which are particularly intricate in the Latin American market. By offering a software-first approach, Mendel generates revenue through recurring SaaS fees, accounting for over 50% of its income, supplemented by interchange fees from credit cards and a take rate from its bill pay product.
Expanding Horizons
Currently operating in Mexico and Argentina, Mendel serves approximately 500 customers, including notable enterprises like Mercado Libre, FEMSA, Adecco, and McDonald’s. With a team of 80 employees, the company plans to expand its geographical footprint and continue enhancing its product offerings to meet the evolving needs of enterprises in the region.
