Happay, an expense management solution company has raised $10million (Rs 65 crore approximately) in a series B funding exercise. This investment has come from multiple sources, but a major chunk (Rs 38.50 crore) of the investment has come from the company’s existing investor Sequoia Capital while another big portion of around Rs 26 crore has been put in by Axiom Capital, according to a VCCircle report.
Apart from these two, other notable investors in this round who picked up smaller amounts to invest in Happay included Jerry Yang, the co-founder of Yahoo, who now heads AME Cloud Ventures. These details have come through private sources with insight into this financial arrangement and not directly disclosed by any of the parties involved.
With this fresh fund infusion, the overall shareholding in VA Tech Ventures, the company that owns and operates Happay, will stand at 32.4% with Sequoia and with Prime Venture Partners, one of the early stage investors, around 26% and 30% will be with the 2 promoters, Varun Rathi and Anshul Rai. The company, post this series B funding will command a valuation of around $53 to $55 million.
Happay began operations in 2012 and in its initial avatar, it operated as a mobile wallet allowing peer-to-peer transactions and subsequently an expense management app was offered to the customers. It later transformed itself as an enterprise-oriented service provider offering a basket of facilitation products that help companies manage their employees’ expenses through technology and to save on paperwork and even more importantly eliminate employees’ drawing cash from the company. Happay offers them expense cards which can be used by them on behalf of the company and the accountants will find it easy to track the employees’ travel and other expenses on behalf of the company on real time basis and keep updating the records automatically.
Some of the solutions customers can avail from Happay include petty cash management, expense report automation, prepaid cards for business expenses, travel and expense management, international travel card and a digital marketing expense card. These would be offered on an ala-carte basis and the customer can pick and chose the modules needed and Happay will provided them with the support.
The company’s revenues for the last reported financial year stood at Rs 10.09 Crores, which jumped from Rs 3.47 crore the previous year. However, the venture is yet to turn profitable and continues to post losses.
Going ahead, the company has drawn up plans to energize the system and to improve its financial position in the months to come.