The sum of the acquisition remains undisclosed. According to the officials, the acquisition signals Paystand’s interest in expanding overseas. The company now majorly operates its business in the US and Canada and is mainly focused on collecting revenue and helping businesses get paid more efficiently and faster.
Yaydoo, on the other hand, is focused on serving customers in Spanish-speaking Latin America (including Colombia, Peru, and Chile) and it specialises in managing order procurement and accounts payable (AP) systems. Yaydoo is a Software-as-a-Service (SaaS) subscription model, but its last funding funding gave it the chance to create a pool of potential customers with a ‘freemium’ offering.
By integrating its technology with Yaydoo, Paystand intends to improve its current business-to-business (B2B) payment capabilities to expand its market reach. The acquisition will allow Paystand to increase payment processing to its services, enabling clients to operate more efficiently.
While the two firms will continue operating independently, they will tap a massive opportunity of cross selling each product into different markets and accounting functions.
Yaydoo is a B2B software and payments company that offers three products: VendorPlace, P-Card, and PorCobrar – for optimising access to smart liquidity, managing cash flow, and connecting small, midsize, and large businesses to an ecosystem of digital tools.
B2B software solutions include customer relationship management CRM, order taking, merchandising software, B2B ecommerce platform, special ‘members only’ portals, and customer service applications. Depending on specific business needs, B2B software solutions can unify your CRM, customer data, inventory, ordering, and payments in a single platform.
Yaydoo, for example, is a procurement platform that streamlines business purchasing using a cloud-based e-procurement software and artificial intelligence. Official have stated that the whole idea of Yaydoo was to provide procurement, accounts payable, and accounts receivables, but in a simpler format so that the collection and payment of B2B transactions could be affordable for small businesses.
As Paystand mostly operates in the US and Canada, its move illustrates the growing appetite for fintech startups to expand overseas.
Therefore, regions like Latin America, where fintech investment accelerated significantly, attracted more fintech startups than others. The region saw growth of nearly four times the VC investment dollars, rising from USD 4.1 billion in 2020 to USD 15.7 billion in 2021, according to LAVCA.
In 2022, the venture capital volume calculated by the Association for Private Capital Investment in Latin America shows a slight decrease compared to previous quarters. Even so, the volume of investments attracted by 190 transactions in the region between January and March 2022 reached USD 2.8 billion, which is 67% greater than a year earlier and more than four times the amount registered in the same period of 2020.
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