A Dublin-based startup, CleverCards, has recently secured 8 million euros in funding to combat the abuse of corporate expenses by employees. This funding comes at a time when the financial technology industry is experiencing a slowdown in investments. CleverCards utilizes a digital platform linked to configurable expense cards to provide companies with control over how their employees utilize corporate payment cards.
According to a global survey of CFOs conducted by Robert Half in 2016, employees have made various improper expense report requests ranging from doggie day spa visits to dance classes and even a welder. While these requests may seem odd, they shed light on a common problem faced by many companies – the inability to trust employees’ judgment when it comes to corporate expenses. CleverCards CEO, Kealan Lennon, has designed the platform to address this challenge by offering prepaid cards that can be customized to limit usage to specific employees and block inappropriate transactions.
CleverCards announced that the latest round of funding was led by strategic investor Pluxee, bringing the total funds raised by the startup to over 28 million euros. Pluxee, a spin-off of French catering firm Sodexo, focuses on employee vouchers and benefits and is listed on the Euronext stock exchange in France with a valuation of 4 billion euros. Since its establishment in 2019, CleverCards has onboarded more than 10,000 businesses as clients, including eBay, PaddyPower, Betfair, Accenture, Microsoft, and Apple, among others. Additionally, the startup collaborates with public sector organizations to streamline payment processes and enhance fraud prevention measures.
In 2022, CleverCards partnered with the U.K. government to facilitate the release of social welfare payments to individuals using smart meters. These recipients typically pay their bills through direct debit but require additional financial assistance due to escalating fuel prices. By deploying artificial intelligence for identity verification checks, CleverCards ensures that the funds can only be used to settle bills with select utility companies, thereby minimizing the risk of fraud.
Despite the challenging investment landscape in the fintech sector, CleverCards’ successful funding round underscores its resilience and market competitiveness. Lennon noted that the startup is progressively gaining market share from industry giants like Adyen and Stripe by offering tailored solutions and exceptional service. The latest injection of funds will enable CleverCards to expand its operations, enhance its product offerings, and explore new avenues for growth.
In conjunction with the funding round, CleverCards appointed five new non-executive directors to its board, each bringing extensive experience in payments technology. The lineup includes industry veterans Patrick Waldron, Donal Daly, Marc Frappier, Garry Lyons, and Viktoria Otero del Val. This strategic move aims to leverage their expertise and industry knowledge to drive the company’s growth and strengthen its position in the market.
CleverCards’ innovative approach to managing corporate expenses and commitment to providing secure and efficient payment solutions have positioned the startup as a leading player in the financial technology space. With the latest funding injection and a strong board of directors, CleverCards is poised for continued growth and success in the dynamic and competitive fintech landscape.