Bill.com vs Tipalti

https://techcrunch.com/2021/12/08/accounts-payable-automatio…
https://venturebeat.com/2021/12/08/automated-accounts-payabl…
https://www.businesswire.com/news/home/20211124005832/en/Fin…

Tipalti is an accounts payable software company that is becoming more of a full-on direct competitor to Bill.com.
They’re not a public company but just raised money at $8.3B valuation.

‘The accounts payable software market was pegged as a $8.77 billion market last year, a figure that’s predicted to more than double within seven years.
Tipalti is focused on mid-market businesses, which are defined as those with revenues between $10 million and $1 billion.
In the U.S. alone, mid-market companies account for more than a third of employment and about 40% of GDP.’
Bill.com is currently focused more on SMBs, but is quickly bumping shoulders with Tipalti as they continue to move upmarket.

Tipalti 'is well-positioned to “accelerate its product roadmap” and global expansion plans. This will include rolling out new ways to manage spending through a corporate credit card, as well as a feature that will help teams “use invoices as a point of social engagement,” according to Amit. This will be less about morphing into a social network than it will be about making it easier to glean answers from across an organization around “specific areas of spend.”
It looks like Tipalti wants to move in the direction that Bill.com has already gone with acquiring Divvy (smart corporate card offering)

‘Tipalti maintained its best-in-class customer satisfaction rating of 98%, grew its revenue by 83% in the first half of 2021 relative to the first half of 2020.’
‘Tipalti currently processes more than $30 billion in total annual payments volume — growing 120% year over year. It also recently passed the 2,000 customer mark.
Those customers include Roblox, Amazon Twitch, GoDaddy, Roku, WordPress.com and ZipRecruiter, among others.
For some context, at the time of its Series E raise in October 2020, Tipalti said it had seen transaction volume on its platform balloon to $12 billion, up 80% from the year prior. It then had some 1,000 customers on its books.’

“We expect to double our go-to-market team next year,” Amit told TechCrunch. “The addressable market we have today is around 700,000 companies with very little penetration between us and the few other players in the market.

So, Tipalti has accelerated from 83% YoY TPV growth in 2020 to now 120% YoY TPV growth in 2021!
In comparison, Bill.com processed $46.9 billion in total payment volume in Q1 2021, an increase of 63% YoY. Bill.com’s Q1 organic core revenue increased 78% YoY.


           YoY Rev   YoY TPV   TPV
[Bill.com](http://Bill.com)   78%       63%       $46B
Tipalti    83%       120%      $30B

And on Tipalti’s webpage, it’s clear that they are targeting any current Bill.com customers that have grown to a larger size in terms of revenue.
https://tipalti.com/bill-com-alternative/
“4 Signs You’ve Outgrown Bill.com for Accounts Payable” and “UPGRADE TO THE ENTERPRISE-GRADE BILL.COM ALTERNATIVE FOR ACCOUNTS PAYABLE”

Anyway, my take is that although the mid-market space is large enough for both to grab share, Tipalti should be given some attention. It’s interesting to see how explosive their growth is…

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