- Danish spend management startup Pleo has announced that it plans to lay off nearly 15% of its workforce.
- As the company has around 1,000 employees currently, it could affect up to 150 people.
- Pleo develops the spend management tools for SMBs across Europe.
In a blog post, the co-founder and CEO Jeppe Rindom wrote that Pleo, at the point of almost 1,000 employees and with their focus across 16 different countries, feels so much other than just 12 months ago.
He added that the world has changed, and their next chapter will look different. They no longer operate under a ‘growth first’ mandate but rather a reality of ‘growth through focus and efficiency.
Pleo raised $150 million in July 2021 and another $200 million in December 2021. The company reached a $4.7 billion valuation following this Series C round. It became one of the most valued fintech companies in Europe.
Everyone has played an instrumental role in making Pleo reach this level. Rindom wrote that they have made their priorities and set their strategy for the coming year. And sadly, this is impacting 15% of their roles, and up to 150 of their colleagues may have to leave.
Pleo grew at a rapid pace. In 2021, the company had 20K customers across six countries: Denmark, Sweden, Germany, Spain, Ireland, and the UK. Now, the company runs in 16 different countries. Pleo competes with Spendesk and Payhawk.
The startup gives company cards with individual and team spending limits. Employees can attach the expense receipt in He directly when they buy something. The platform also supports out-of-pocket expenses if you pay in cash and get reimbursed later.
He finally syncs expenses with accounting tools like Sage, Xero, and Quickbooks. The company also provides an invoice management product to replace the existing accounts payable solution. The idea is that Pleo can help users automate many processes that come with spending the company’s money.
Though Pleo may have grown too quickly, raising more money at the same valuation will take a lot of work. He has a longer runway, but a few employees will have to leave the company.