Mendel Secures $35M Series B: The YC Alum Revolutionizing LatAm Enterprises
Mendel, a corporate spend management platform based in Mexico City, has successfully secured $35 million in a Series B funding round, as reported exclusively by TechCrunch. This significant investment will enable Mendel to enhance its offerings and continue its mission to revolutionize spend management for enterprises across Latin America.
Overview of Mendel’s Funding Journey
Mendel’s latest funding follows a previous raise in December 2021, where it secured $15 million in Series A funding along with $20 million in debt financing while participating in Y Combinator’s Winter 2021 cohort. With the new capital, the startup’s total equity funding has reached $60 million, supplemented by $50 million from a credit facility.
Transforming Corporate Spend Management
The primary goal of Mendel is to automate the corporate spend management process, simplifying operations for CFOs that are typically handled manually. By offering a comprehensive solution, Mendel aims to be the go-to platform for B2B spend, integrating key functions such as:
- Expense management
- Payments
- Corporate travel
Co-CEO and co-founder Alan Karpovsky stated, “Our aim is to provide finance teams in Latin America with real-time visibility and control over their spend, including employee expenses, vendor payments, and travel bookings.”
Founding Team and Business Growth
Mendel was founded in early 2021 by Karpovsky and Alejandro Zecler, who have a history of founding and selling startups. They were later joined by co-founders Helena Polyblank (CPO) and Gonzalo Castiglione (CTO). Although Mendel did not disclose its current valuation, Karpovsky emphasized that this funding round signifies a notable increase from previous valuations.
Financial Performance and Future Outlook
While Mendel is not yet profitable, Karpovsky anticipates reaching profitability by late 2025. The company has reported an impressive 2.5x year-over-year growth in annual recurring revenue (ARR) and maintains gross margins exceeding 75%.
Investment and Strategic Partnerships
The latest funding round was led by Base10 Partners, with participation from new investors PayPal Ventures and Endeavor Catalyst, alongside existing investors such as Infinity Ventures, Industry Ventures, and Hi.vc.
Mendel distinguishes itself as a “software-first” company, which allows it to charge recurring SaaS fees instead of solely depending on interchange revenue or lending models. Its revenue model includes:
- Over 50% from SaaS fees for expense management and travel tools
- Interchange fees from credit cards
- A take rate from its bill pay product
Competitive Landscape and Market Advantage
Karpovsky believes Mendel’s focus on Latin America provides a competitive edge by addressing complex, country-specific regulations such as tax codes and multi-currency workflows. He humorously remarked, “Mendel is like SAP Concur and AMEX having a child.”
In comparing Mendel to New York-based decacorn Ramp, Karpovsky highlighted that “Mendel is like Ramp for Latin American enterprises,” catering specifically to large organizations that require comprehensive integration solutions.
Expansion Plans and Customer Base
Currently, Mendel employs 80 staff members, a significant increase from 64 a year ago. The company operates in Mexico and Argentina, serving approximately 500 customers, including notable names like Mercado Libre, FEMSA, Adecco, and McDonald’s. Looking ahead, plans for geographical expansion include:
- Chile (2025)
- Colombia (2025)
- Peru (2025)
- Brazil (2026)
“From day one, our strategy has been to consolidate the largest Spanish-speaking market in Latin America before expanding further,” Karpovsky explained.
Investor Insights
Jason Kong from Base10 Partners noted the firm’s interest in Mendel’s unique positioning in the spend management space. He pointed out the company’s impressive capital efficiency and its ability to replace legacy systems like SAP Concur, highlighting a clear product-market fit.
For more information about Mendel and its innovative approach to corporate spend management, visit their official website or explore related resources on TechCrunch.
