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Klarna backers invest $20m into Bulgarian payments startup

Payhawk will use the fresh cash to build new products, grow its employee numbers and expand internationally.

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Hristo Borisov (right)/Payhawk

Another day, another multi-million dollar fundraise.

Payments and expense management startup Payhawk has today bagged a $20m Series A led by US-based fund QED.

QED has one of the strongest track records in investing in fintechs, having invested in 18 fintech unicorns, including Swedish buy-now-pay-later fintech Klarna and Brazilian digital bank Nubank.

Other existing investors also participated in Payhawk’s latest fundraising efforts, including Earlybird Digital East, which previously led Payhawk’s $3.6m seed round in March 2020.

Throughout 2020, Payhawk saw its growth multiply tenfold and its revenue double in the first quarter of 2021 alone. 

Payhawk hopes to become a one-stop-shop for payments, invoices and expense management, helping finance teams to fully automate spending, track budgets and reduce paperwork.

“We have huge ambitions for the year ahead,” Payhawk CEO and founder Hristo Borisov said.

“Over the next year, we are keen to provide great support to finance teams across 30+ countries to manage company cards, invoices and payments in a unified and efficient way,” 

The fintech plans to use the funds to expand its product offering and grow its employee numbers, with plans to widen its coverage to businesses outside the UK and EU.

Payhawk is also planning to use the fresh capital to add new payment products, including credit cards, and to launch its services in new currencies.

“We are delighted to invest in Payhawk. The company is growing at a phenomenal rate,” Yusuf Ozdalga,QED Investors added. 

“The company’s product fundamentals are exceptionally strong, and industry trends are working in the company’s favour too. As budgets are more typically managed online by remote teams, there is unprecedented demand for cost-effective finance solutions. We look forward to working with Hristo and the team”

Payhawk, which was founded in 2018 in Bulgaria, currently offers its services in 30 countries across Europe and plans to deepen its presence in the UK, Germany and Spain thanks to the new funding.

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