Paystand Acquires Yaydoo

Transaction Overview

• On August 3^rd, 2022, Paystand announced it would acquire Yaydoo. A Mexico-based fintech company.
• Yaydoo specializes in payment solutions in account payable (AP), liquidity, and cash flow management.
• Securing $20M Series A led by SoftBank, Yaydoo is a leading B2B payment solution provider in Latin America.
• It is the first M&A transaction Paystand has done; it received $50M Series C in July 2021from investors including NewView Capital and SoftBank.

Paystand’s Rapid Growth

• Founded in 2013, Paystand has grown into a strong, pioneering payment management company powered by blockchain and cloud technologies.
• Striving to drive the democratization of B2B enterprise spaces, Paystand focuses on changing the ecosystem and establishing a cashless, feeless, and independent payment network.
• The company has published many cutting-edge offerings including the industry’s first blockchain-based AR-centric dynamic application and corporate card with cryptocurrency rewards.
• The acquisition of Yaydoo will further strengthen Paystand’s leading position in the B2B payment space and its geographic network into developing markets like LATAM, which have a less mature ePayment infrastructure.
• The resulting company will have over $5BN payments processing records and 500,000 plus connected businesses.
• Paystand has experienced over 700% revenue growth (past 3 years) and has a potential IPO plan post acquisition.

TBP’s Analysis of Trends in B2B Payment Ecosystem

• With raging inflationary environment and hiking interest rates, more and more businesses pay extra attention to smarter working capital management solutions that could result in more cash and more efficient finance cycle.
• This need might be more acute among SMEs which largely have legacy payment systems, creating more demand for digital B2B payment offerings from companies like Paystand.
• According to Goldman Sachs, the global B2B payments market has reached $940BN with 14% of it specialized in AR/AP software. The market potential will be further unlocked as more companies choose to adopt the solution.
• In the broader Fintech market, the slowdown does exist as the aggregate deal volume fell 30.9% in the first quarter (KPMG). However, the Yaydoo deal proves the continued capital and strategic interest in the sector innovation.

Notable Recent Transactions in the Space

• In August 2022, Global Payments (NYSE: GPN) has announced to acquire EVO Payments (NASDAQ: EVOP), a leading global B2B payment solutions provider for $4BN (4.8X REV).
• In the same month, Plastiq, an AP/AR B2B payment technology provider, plans to go public via SPAC ($480M valuation).

TBP is NOT a financial advisor on this transaction