According to PYMNTS.com, Bulgarian expense management startup Payhawk is in discussions to raise more than $100 million in a new funding round, as reported by Bloomberg News on Wednesday, January 7. Citing sources familiar with the matter, the report indicates this round could potentially double the company’s valuation to a massive $2 billion. PitchBook analyst Navina Rajan told Bloomberg that Europe’s fintech sector remains “resilient” despite intense competition for funding from AI startups. Founded in 2018, Payhawk automates corporate expenses, card payments, and supplier invoices. The company recently expanded its European eInvoicing capabilities through a November collaboration with Spain-based Invopop. Enterprises are increasingly turning to platforms like Payhawk as corporate spending becomes more digital and globalized, yet often remains manually processed.
Beyond The AI Hype Cycle
Here’s the thing that’s really interesting about this news. Everyone is throwing money at AI right now, and for good reason. But this potential $2 billion valuation for Payhawk is a stark reminder that other, more mature tech sectors are still commanding serious attention and capital. As PitchBook analyst Navina Rajan pointed out, fintech in Europe is seeing some of the “biggest step ups” precisely because these companies have moved past the startup phase. They have proven business models, real revenue, and are solving persistent, expensive problems. It’s a bet on execution and scale, not just potential. That’s a different, and arguably more stable, kind of investment thesis.
The Real Problem They’re Solving
So why is this space so hot? Look, the article nails it: corporate spending is a mess. It’s “increasingly digital, globalized and instant,” but also “stubbornly manual in key areas.” Think about it. You’ve got remote teams, virtual cards, cross-border suppliers, and a tangle of receipts, approvals, and invoices. Relying on spreadsheets and old processes isn’t just slow—it’s a direct line to errors, fraud, and compliance nightmares. Payhawk and its competitors aren’t just selling a nicer app. They’re selling control, visibility, and audit trails. They’re consolidating card transactions, reimbursements, and accounts payable into one system. For a CFO, that’s not a nice-to-have; it’s a financial control tower that pays for itself.
The Platform Play Is Everything
The collaboration with Invopop is a perfect example of the strategy. It’s not just about offering a corporate card or an expense report tool anymore. The goal is to become the central, unified platform for all business spending. By baking in eInvoicing capabilities directly, they remove another point of friction and another potential system integration. The vision is clear: own the entire spend workflow, from the moment an employee swipes a card to the moment a supplier gets paid. That’s a hugely sticky proposition for businesses. Once you’ve got all your financial operations flowing through one ecosystem, switching costs become enormous. That’s the kind of moat investors love to see, and it’s probably a big part of why Payhawk’s valuation could hit that $2 billion mark.
