Yaydoo, PayStand Team Up to Launch New UnicornBy Sofía Hanna | Wed, 08/03/2022 - 16:27
The merger of Mexican Yaydoo and US PayStand has led to the birth of a new unicorn. Both companies offer technology-based B2B solutions to automate transactions, payment processes and invoice collection. With this new collaboration, the companies are expected to push the boundaries of B2B fintech on the continent and achieve better financial processes using different software tools.
"At Yaydoo and PayStand, we have enabled B2B payment networks through the accounts receivable and payable software ecosystem we created. Now is the time to join forces and deliver solutions that will simplify and digitize trade between the US and Mexico, unlocking immense opportunities to automate supply chain finance through imports and exports in one of the busiest trade corridors globally," said Sergio Almaguer, CEO, Yaydoo.
Through their union, the two firms aim to offer technology-based B2B solutions for technology startups and other companies in Latin America. Currently, 87 percent of companies have financial liquidity problems due to obsolete financial processes that cost them over US$100 billion in various low-productivity software tools. Less than 5 percent of companies in Latin America are digitalized, which means that the opportunity for B2B payments in places like Mexico and other emerging economies offers much greater growth potential, said both companies through a joint press release.
"DeFi-enabled B2B payment networks using blockchain can unlock transformative working capital efficiencies and make financial services fairer and more open, especially in developing markets like Latin America. We believe that using DeFi on blockchain is an industry disruption that transcends borders and can balance the forces between traditional financial institutions and governments, buyers and suppliers, benefiting businesses and society," said Jeremy Almond, CEO, Paystand. The combined company will create high-return synergies, expand into new markets, diversify its product portfolio and access new distribution channels and talent.
The merged firm will have the ability to expand from the US to Canada and from Mexico to Colombia, where Paystand and Yaydoo products can be distributed through existing channels and integration partners.
"This is one of the first unicorns to be created from a merger. This brings together the businesses and the investors, and the transaction is also linked to an additional investment that is already valuing us at over US$1 billion. We become a new Latin American unicorn and the first to be created from two companies between the US and Mexico," said Almaguer. Both companies will continue to operate under their own brand in their respective market segment. "Yaydoo will be focused on emerging markets and Paystand will be focused on developed markets; the first step will be for them to grow very strongly in the US and Canada, and for us from Mexico to Colombia, Peru and Chile,” said Almaguer.