Last week the French company Quadient announced the acquisition of YayPay, a fintech startup with Ukrainian roots. Quadient did not disclose the amount of the deal, but YayPay co-founder Eugene Vyborov told Ukrainian tech blog AIN.UA that this full-cash transaction amounted to more than €17 million.
Quadient got a 87% stake in the company while its founders kept minority stakes.
YayPay offers a combination of automated invoice delivery paired with collections management, credit assessment, payment and cash application solutions. In particular, its software allows company accountants to manage invoices, predicting settlement likeliness and date based on the analysis of payers’ transactional and behavioral patterns.
Underpinned by big data and machine learning algorithms, this finance workflow software allows companies to accelerate collections, improve customer relationships, and predict cash.
YayPay claims that its clients have reduced Days Sales Outstanding (DSO) by up to 25% while dramatically improving A/R productivity. This is “because collection teams can more accurately monitor cash inflow and proactively work with slow-paying clients.”
According to IDC data cited by Quadient, the SaaS financial applications market, including accounts payable and accounts receivable software, was valued at $11 billion in 2018 and experiences year-on-year double-digit growth. Quadient found that 50% of the documents being processed by its customers through mailing equipment are invoices or invoice-related.
Co-founded in 2015 by Anthony Venus, an Australian-American entrepreneur, and Eugene Vyborov, a figure of the Ukrainian tech scene, the company released its first software module in January 2017. It claims to have collected since then over $100 million in receivables, and processed more than 150,000 invoices.
YayPay was recently positioned in the Major Player category of the 2019 IDC MarketScape on worldwide SaaS and cloud-enabled accounts receivable applications.
The startup previously secured $5.3 million in 2017 and $8.4 million in 2018.
YayPay was sold to Quadient while its sales were affected by the COVID-19 crisis. But it found a “cultural fit” with the acquirer, which shared the company’s vision and values, Vyborov told AIN.UA.
Following the acquisition, YayPay expects to scale up sales and accomplish new projects with “serious expansion plans.” Even though YayPay will not be run independently, its current team of 60 people will keep its responsibilities.
Like many Ukrainian startups, YayPay has its headquarters in the USA, but kept R&D offices in its country of origin — in Dnipro (formerly known as Dnipropetrovsk, a city in Central Ukraine), and Kyiv (Kiev).