YC Alum Mendel Raises $35M Series B to Empower LatAm Enterprises

Mendel Secures $35 Million in Series B Funding

Mendel, a company headquartered in Mexico City, has successfully closed a $35 million Series B funding round, as reported exclusively to TechCrunch.

Recent Funding History

The corporate spend management platform previously secured $15 million in Series A funding alongside $20 million in debt back in December 2021. This followed their participation in the Y Combinator Winter 2021 program.

With this new investment, Mendel’s total equity funding reaches $60 million, complemented by $50 million obtained through a credit facility.

Core Mission and Services

Mendel aims to fundamentally change how companies manage their spending. They are focused on automating traditionally manual processes for enterprise CFOs.

Essentially, the company strives to become a comprehensive solution for all business-to-business (B2B) expenditures.

Their platform consolidates expense management, payment processing, and corporate travel arrangements into a single system.

Leadership Vision

“We are dedicated to providing CFOs and finance teams throughout Latin America with immediate insight and control over their financial outlays – encompassing employee expenses, vendor payments, and travel bookings,” stated co-CEO and co-founder Alan Karpovsky.

Founding and Team

Alan Karpovsky and Alejandro Zecler, both experienced entrepreneurs having previously founded and exited other ventures, launched Mendel in early 2021.

Helena Polyblank (Chief Product Officer) and Gonzalo Castiglione (Chief Technology Officer) subsequently joined as co-founders.

Financial Performance and Future Outlook

Mendel has not disclosed its current valuation, but Karpovsky indicated that it represents a substantial increase from the previous funding round.

While specific revenue numbers remain confidential, the company reported nearly 2.5 times year-over-year growth in annual recurring revenue (ARR), alongside gross margins exceeding 75%.

“Although we are not currently profitable, we project to achieve profitability by the end of 2025,” Karpovsky conveyed to TechCrunch.

Investor Details

Base10 Partners spearheaded Mendel’s latest funding round.

Notable participation came from new investors PayPal Ventures and Endeavor Catalyst, in addition to continued support from existing investors including Infinity Ventures, Industry Ventures, and Hi.vc.

Here's a summary of the investors:

• Base10 Partners
• PayPal Ventures
• Endeavor Catalyst
• Infinity Ventures
• Industry Ventures
• Hi.vc

Mendel: A New Approach to Spend Management

The company operates on a “software-first” model, prioritizing enterprise clients and generating revenue through recurring SaaS fees. This differs from businesses heavily reliant on interchange revenue or lending practices.

Mendel’s income is derived from a combination of sources. Over 50% comes from SaaS fees for its expense and travel tools, alongside interchange fees from credit card transactions and revenue from its bill pay product.

Latin American Focus: A Key Advantage

Karpovsky emphasizes that Mendel’s concentration on the Latin American market provides a significant competitive edge. The platform is designed to navigate “complex, country-specific regulations” prevalent in the region.

These regulations encompass diverse requirements, including varying tax codes, invoicing protocols, and the management of multi-currency transactions.

Positioning in the Market

Karpovsky playfully describes Mendel as the result of combining the strengths of SAP Concur and AMEX. This highlights the platform’s comprehensive capabilities.

Comparisons to Ramp are often drawn, with Mendel being positioned as “Ramp for Latin American enterprises.” However, Mendel distinguishes itself by focusing on “large, complex organizations.”

Targeting Complex Enterprise Needs

Mendel caters to organizations requiring sophisticated features. These include multi-entity management, multi-currency support, multiple credit lines, and seamless integration with existing ERP systems.

Growth and Expansion Plans

Currently, Mendel employs 80 individuals, a growth from 64 employees the previous year. The company is actively planning geographic expansion to broaden its reach.

Operations are already established in Mexico and Argentina, serving approximately 500 customers, including prominent names like Mercado Libre, FEMSA, Adecco, and McDonald’s.

Future expansion targets include Chile, Colombia, and Peru in 2025, followed by Brazil in 2026.

“Our strategy from the outset involved solidifying our position in the largest Spanish-speaking market in Latin America before initiating geographic expansion,” Karpovsky explained.

Investor Perspective

Jason Kong, a Partner at Base10, shared that his firm was drawn to Mendel’s “unique positioning” as a spend management solution for large companies in Latin America, a region often underserved.

The company’s capital efficiency, achieving cash-flow positivity by December 2024, was particularly noteworthy in a sector where many companies struggle with profitability.

Kong also highlighted Mendel’s ability to displace established solutions like SAP Concur and rapidly acquire large enterprise clients—often within three months for organizations with over 3,000 employees—as evidence of strong product-market fit.

Competitive Landscape

Other players in the Latin American spend management space include Clara and Jeeves, both also YC alumni. However, Kong notes that these companies primarily target smaller businesses and rely more heavily on transactional fees.