Tradeshift engage $240M and delays its expected IPO

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Tradeshift — the startup which set out to disrupt the traditional arena of supply chain payments and marketplaces when it first appeared in 2008 — has today announced a new funding round of $240 million in equity and debt, raised from a combination of existing and new investors.

The funding will be used to help reinforce its growth and, it says, set the company “on a direct path to rentability in the near future.”

That last line is telling, as the new funding comes in the context of what was largely held to be a window of opportunity for Tradeshift  to head toward an IPO.

What this new funding means it that Tradeshift is effectively delaying its IPO to get its “house in order” in the context of a new economic environment that has become mistrustful toward tech IPOs in the wake of the WeWork debacle, which saw public investors cool toward new tech company listings.

Even though the company isn’t declaring this, perhaps in this instance, its motto should be provisory changed from “shift happens” to the apter “shit happens.”

Still, at least Tradeshift is coming from a position of relative strength. In a statement, the company announced it has reported more than two years of the huge growth in quarterly income, and assessed its best-ever year in 2019, including more than 60% income raze, with more than 250 deals closed (the average deal size was doubled). Moreover, more than 40% of the total cumulative transaction volume across its platform came in the past year, it says.

Tradeshift said the additional capital will be engaged to further momentum it has seen across core product lines, including Tradeshift Pay, which was ranked in 2019 as the strongest ePayables SaaS solution in the industry according to the firm Ardent Partners, and Tradeshift Go, with more than 200 new customers signed in 2019.

The new investment will also enable the monetization of its trade finance proposition across a user base of over two million suppliers.

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