In an exclusive announcement to TechCrunch, Mexico City-based Mendel has successfully raised $35 million in its Series B funding round.

The corporate spend management platform Mendel previously secured $15 million in Series A funding and $20 million in debt in December 2021, after participating in Y Combinator’s Winter 2021 cohort. This latest investment brings the total equity funding to $60 million and $50 million via a credit facility, totaling $110 million in funding to date.

Mendel’s primary objective is to revolutionize corporate spend management by automating the majority of manual operations currently handled by enterprise CFOs. Simply put, the platform aims to be a one-stop-shop for all B2B spending, integrating expense management, payments, and corporate travel into a single solution.

According to co-CEO and co-founder Alan Karpovsky, “Our goal is to provide CFOs and finance teams in Latin America with real-time visibility and control over their spending, whether it’s employee expenses, vendor payments, or business travel bookings.”

Co-founders Alan Karpovsky and Alejandro Zecler, who previously founded and sold other startups, launched Mendel in early 2021. They were later joined by Helena Polyblank (CPO) and Gonzalo Castiglione (CTO) as co-founders.

Mendel has chosen not to disclose its valuation, with Karpovsky stating only that the round represents “a significant step up” from the company’s previous raise. The company has also declined to release specific revenue figures, although Karpovsky noted that its annual recurring revenue (ARR) has grown almost 2.5 times year-over-year, with gross margins exceeding 75%.

“We are not yet profitable, but we anticipate reaching profitability by late 2025,” Karpovsky told TechCrunch.

Base10 Partners led Mendel’s latest funding round, with participation from new investors PayPal Ventures and Endeavor Catalyst, as well as existing backers Infinity Ventures, Industry Ventures, and Hi.vc.

SAP Concur meets AMEX

As a “software-first” company focused on enterprises, Mendel is able to generate revenue through recurring SaaS fees, rather than relying solely on interchange revenue or lending-based models. The company’s revenue streams come from a combination of SaaS fees (over 50%) for its expense management and travel tools, interchange fees from credit cards, and a take rate from its bill pay product.

Karpovsky believes that Mendel’s focus on the Latin American market provides a competitive advantage, as the company is able to address “complex, country-specific regulations” such as tax codes, invoicing requirements, and multi-currency workflows, among other things.

“We like to say that ‘Mendel is like SAP Concur and AMEX having a child,'” Karpovsky quipped.

When compared to New York-based decacorn Ramp, Karpovsky noted that Mendel is similar, but with a few key differentiators, including its focus on “large, complex organizations that require multi-entity, multi-currency, multi-credit-line, and deep ERP integrations.”

Currently, Mendel has 80 employees, up from 64 employees a year ago. Looking ahead, the company plans to expand geographically, having already established operations in Mexico and Argentina with around 500 customers, including Mercado Libre, FEMSA, Adecco, and McDonald’s. Mendel aims to expand into Chile, Colombia, and Peru in 2025, and Brazil in 2026.

“Our approach from day zero was to first consolidate the largest Spanish-speaking market in LatAm before starting geo-expansion,” Karpovsky said.

Base10 Partner Jason Kong told TechCrunch that his firm was drawn to Mendel’s “unique positioning” as a spend management platform for large companies in the underserved but growing Latin American market.

“The company’s high capital efficiency, being cash-flow positive in December 2024, stood out in a sector where many players struggle with unit economics,” Kong added. “Additionally, Mendel’s ability to replace legacy solutions like SAP Concur and win large enterprise customers at a fast sales velocity (sub-3 months for 3,000+ employee enterprises) demonstrated clear product-market fit.” Other companies operating in this space in Latin America include Clara and Jeeves — another YC alum — but both target more SMBs and rely more on transactional fees, noted Kong.