Company Overview
| Founded | 2009 |
| Sectors | Supply Chain Management |
| Address | San Jose, CA, U.S.A |
| Founded | 2009 |
| Sectors | Supply Chain Management |
| Address | San Jose, CA, U.S.A |
| Christian Lanng | Co-Founder & CEO |
| Mikkel Hippe Brun | Co-Founder & SVP of APAC |
| Gert Sylvest | Co-Founder & Head of Financial Technology Department |
| Deborah Crow | Interim CFO |
| Raphael Bres | CPO |
| Laurel Jamtgaard | General Counsel |
| Marissa Mattson | Chief Personnel Officer |
| Ryan Tate | Chief Accounting Officer |
Note: In April, the Company’s General Counsel Russell Joseph resigned from the Company. In his place, Tradeshift appointed new General Counsel, Laurel Jamtgaard.
| Christian Lanng | Co-Founder & CEO |
| Mikkel Hippe Brun | Co-Founder & SVP of APAC |
| Edward Shenderovich | Founding Partner of Kite Ventures |
| Stephen Chandler | Notion Capital |
| Noriaki Okubo | Scentan Ventures |
| Ian Swycher | Anzen Private Equity |
| Sumita Banerjee | PSP Public Credit |
| Jeff Ransdell | Fuel Venture Capital |
| Bobby Aitkenhead | IDC Ventures |
During the first quarter of the fiscal year, Tradeshift reorganized its business and product lines to better streamline operations.
Prior, the Company’s 3 main businesses were:
(1)Tradeshift Pay – an enterprise supply chain payments system;
(2)Tradeshift Buy – an enterprise supply chain procurement platform; and
(3)Network Products, which includes both Tradeshift Go – a tail-spend platform for businesses and Tradeshift Cash – a supply chain lending business.
After the reorganization,
(1)Tradeshift Pay is designated as Payment Automation, and its General Manager is the Co-founder and Senior Vice President Mikkel Hippe;
(2)Tradeshift Buy is being upgraded to a trading platform that connecting its enterprise customer’s suppliers and customers. The new platform is designated as Tradeshift Marketplace, and its General Manager is the Global VP of Commercial Growth, Greg Halko; and
(3)Network Product is designated Small Business / Fintech, and its General Manager is the Co-founder and Senior Vice President Gert Sylvest.
| America | 4 subsidiaries, such as Tradeshift Inc, Tradeshift Mexico S.A. de C.V., etc. |
| Middle East | 2 subsidiaries, Tradeshift UAE FZ LLC, Tradeshift QFZ LLC |
| Europe | 7 subsidiaries, such as Tradeshift Network Ltd., Porta Holdings Ltd., etc. |
| Asia | 4 subsidiaries, such as Tradeshift Asia Holdings Ltd, Tradeshift Japan Inc, etc. |
| Australia | 2 subsidiaries, Tradeshift PTY Ltd. and Tradeshift New Zealand |
| Time | Round | Amount($ m） | Investors |
|---|---|---|---|
| 2011-05 | A | $9 | PayPal Ventures, Notion Capital |
| 2013-01 | B | $28 | Kite Ventures, RTP Global |
| 2014-02 | C | $81 | Scentan Ventures |
| 2016-06 | D | $75 | DCVC |
| 2018-05 | E | $250 | GS Growth, PSP Investments |
| 2020-12 - 2021-12 | Convertible Note | $200 | West River Group , Koch Industries , LUN Partners Group , IDC Ventures , Fuel Capital |
During Q1 FY2023, the Company’s revenue was $17.12 million, which is a 7% decrease from the previous quarter and a 3% decrease from the same period last year.
From the revenue breakdown perspective, in Q1 FY2023, revenue from Payment Automation was $7.56 million, accounting for 44% of the total revenue, which is a 4% decrease from the previous quarter. Small Business (Fintech) revenue was $5.60 million, accounting for 33% of the total revenue, which is a 2% decrease from the previous quarter. Marketplace revenue was $2.82 million, accounting for 16% of total revenue, which has decreased 22% from the previous quarter. Professional Services revenue was $1.15 million, accounting for 7% of total revenue and decreased 1% from the previous quarter.
FY2022-FY2023 Quarterly Revenue （$’ 000）
Q1 FY2023 Revenue Breakdown（$’ 000, %）
Tradeshift’s Q1 FY2023 gross profit was $10.55 million, which is a 12% decrease from the previous quarter and a 11% increase from the same period last year. Gross margin for Q1 was 62%.
Q1 FY2023 operating expenses were $20.07 million, which is a 2% increase from the previous quarter and a 18% decline from the same period last year. The main expense in the first quarter was sales and marketing expense, which accounted for 38% of the total expense and decreased by 13% from the previous quarter. General and administrative expenses accounting for 33% of the total expenses, increased 10% from the previous quarter. Research and development expenses accounted for 29% of total expenses, increased 16% from the previous quarter.
Q1 FY2023 Expense Breakdown（$’ 000）
Q1 FY2023 EBITDA was -$9.52 million.
At the end of April 2022, the Company’s cash and cash equivalents were $37.75 million.
Operating Metrics
During Q1 FY2023, the Company’s GMV (Gross Merchandise Volume) approached $67.9 billion, an decrease of 9% quarter-on-quarter and increased 7% year-on-year.
FY2015 – FY2023 Quarterly GMV
(in billions of dollars)
New Business
During the first quarter of the fiscal year, Tradeshift acquired a new customer in HSBC for its new Marketplace platform. The new platform will allow HSBC to flexibly manage supply chain sourcing and procurement among its clients, vendors, and partners; enable foreign exchange management, automated payments, and lending all in one central interface. Except for the Annual Contract Value, this new Marketplace deal will also bring in additional transaction-based revenue as well.
New Appointments
In April, Tradeshift appointed new General Counsel, Laurel Jamtgaard. Ms. Jamtgaard has accumulated more than 20 years of legal experience in the technology industry. Prior to Tradeshift, she served as Director of Legal and Assistant General Counsel at SAP and Ariba, respectively. Ms. Jamtgaard holds a JD from UC Berkeley and a bachelors degree from Stanford University.
Global Supply Chain Management Market and AP&AR Automation Market
According to Future Market Insight, the supply chain management market solutions revenue totaled up to $19.5 billion for 2020 and newly released data on the supply chain management demand outlook indicates 8.7% year-on-year growth in 2021. The overall market is expected to reach $62.6 billion by 2031, growing at a CAGR of 11.4% for 2021-2031.
According to Mordor Intelligence, the global accounts receivable automation market was valued at $1.89 billion in 2020 and is projected to be worth $3.86 billion by 2026, registering a CAGR of 12.66% during the period of 2021-2026. From a regional perspective, Asia-Pacific is expected to witness robust growth owing to the growing need for automating day-to-day operational processes.
Accounts Receivable Automation Market
Growth Rate by Geography (2020-2025)
Source: Mordor Intelligence
According to Business Wire, the global accounts payable automation market is estimated to be worth $2.5 billion in 2021 and is expected to reach $4.47 billion by 2026, growing at a CAGR of 12.3%.
Global Supply Chain Activity in 2021 Q4
According to Tradeshift’s Q4 2021 Index of Global Trade Health, total growth in global transaction volumes during Q4 remained level with the previous quarter, finishing the year with an index score of 75. Global transaction volumes between buyers and suppliers showed increasing signs of stabilizing, although spiking cases of the Omicron variant tempered the overall momentum across global supply chains, the impact has been generally far less severe than during previous waves.
Cumulative Transaction Volume Growth (orders + invoices) Indexed Against Pre-pandemic Forecast
Source: Tradeshift website
From a regional perspective, the recovery in activity across US supply chains continues to track at a significantly higher level than the rest of the world. Momentum dipped slightly in Q4, falling one point compared to the previous quarter, but an index score of 97 against a baseline of 100 (a reading of 100 indicates growth in line with expectation against historical trends) for the period means the cumulative growth in activity since the pandemic sits just 3 points below the pre-pandemic forecast.
In China, however, tough Covid prevention measures and softening local demand triggered a 10 point fall in transaction volumes against the forecast range. Q4’s Index score of 86 puts cumulative growth in Chinese supply chain activity at its lowest level since the beginning of the pandemic. A spate of lockdowns in key industrial regions across China could trigger more shortages of crucial manufacturing components and extended order backlogs in international markets.
The recovery in supply chain activity across the Eurozone stalled in Q4, dropping 8 points compared to the expected range. A 20 point quarter-on-quarter fall in invoice volumes indicates fulfilment issues remain a key concern across the region, though the overall picture is less volatile than in recent quarters. Activity across UK supply chains fell by 9 points in Q4. Demand appears high, with order volume growth remaining comfortably above the expected range, but a steep drop in invoice volumes during the quarter suggests ongoing pressures within the supplier base.
Cumulative Growth in Invoices and Orders Indexed
Against Pre-pandemic Levels
Source: Tradeshift website
Order volume growth dipped by 0.5 points in Q4, and appears to be settling after a pronounced spike in activity in Q2. The modest dip in order volumes suggests news of the Omicron variant did not spook buyers in the way that previous waves had done. The fact that invoice volume growth on Tradeshift’s platform also flattened in Q4 which suggests suppliers are still struggling to accelerate delivery cycles on orders stemming from earlier in the year.
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