Investment analysis in FinTech sector for business expense management. Captio and Certify.

From a corporate finance point of view, we analyse the purchase of Captio - the Spanish startup that manages corporate travel-related business expenses - by Certify, the US company that offers travel and expense management solutions. online.

We take a look at the largest financing rounds that have taken place in recent years in the Pet Retail sector. In addition, we analyse Tiendanimal's investment round, with which it has received a €60M capital injection.

Captio, a company dedicated to the management of expenses related to business travel.

Captio is a company dedicated to the management of expenses related to business travel. Based in Barcelona since 2012, Captio has developed an application for the automatic recognition of invoices and receipts. After taking a photograph with a mobile phone, the data is extracted and archived in the cloud. It is worth noting that thanks to the approval of the AEAT (Spanish Tax Administration Agency), the capture replaces the original with all effects, favouring the accounting work, so typical of any company.

At the end of 2017, the company was in the hands of account with shareholders such as private equity firms. Kibo Ventures (16%) Venturcap (22%) and Bankinter (11%). In addition, Seedrocket (Barcelona-based startup accelerator) has invested in the startup on several occasions. In several funding rounds between 2013 and 2016, the company raised around €5.5M from investors and partners.

In short, Captio has become the pioneering platform in Spain in offering a solution to such a cross-cutting problem for any organisation: travel expense management. Today, its leading position is endorsed by its use in some of the most important companies in the country, such as BBVA, Mango or Telefónica, as well as many multinationals such as Ticketmaster, Olympus or Pierre Fabre. Captio is currently in the internationalisation phase in Europe. Specifically, the software has been launched in France, the United Kingdom and Italy.

US-based Certify buys Captio for €25M

For its part, since 2008 Certify is a company controlled by the K1 Investment Management fund that provides travel and expense management solutions. online for companies of all sizes. Organisations around the world use this service to book travel, as well as create and submit expense reports quickly, easily and efficiently.

With the acquisition of Captio, Certify not only becomes a force to be reckoned with, especially against competitor firm Concur (a US company that also provides travel and expense management services to companies), but also positions itself in a European market, as Captio's user base is strong in that area. As a result of this transaction, Certify's user base now numbers more than 10,000 customers from almost 100 different countries. With Certify now in charge, the combined operation will continue to build on its existing product lines, while offering customers on both sides access to new products as, following the transaction, Captio's management team will become part of the Certify leadership.

The deal, which was made public on 18 September, will bring advantages to the two companies, which now share a common market and have maintained a good reputation. On the one hand, Certify will further expand its product, improve support for existing customers and secure new customers while accelerating its growth plans. During the 2017 financial year, Captio doubled its turnover to €3.1m. At the same time, it recorded a loss of more than €1 million, according to the company's accounts filed with the Commercial Registry. On the other hand, Captio's customers will be able to access certification tools.

Analysis of the main exits in Spain

The following table lists five acquisitions that are related to the Spanish market. All of them related to the services sector, have been acquired during 2018.