(Bloomberg) -- Treasury management business HighRadius Corp. has completed a funding round that values the company at $3.1 billion, said founder and Chief Executive Officer Sashi Narahari.
The $300 million investment was co-led by Tiger Global Management and D1 Capital, with participation from ICONIQ Growth and Susquehanna Growth Equity. The chief executives of Snowflake Inc., Procore Technologies Inc. and Airtable also wrote checks.
HighRadius’s accounts-receivable software performs functions such as predicting invoice payment dates. Its clients are in sectors such as technology, insurance and manufacturing and include Uber Technologies Inc., Johnson & Johnson and Unilever Plc, according to its website.
Narahari said in an interview that the Houston-based company has grown in the past year, adding that he regrets imposing a hiring freeze in the early days of the coronavirus pandemic. Panic that the technology sector would be negatively affected by the pandemic turned out to be unwarranted, he said.
Narahari said it’s possible HighRadius could go public next year, emphasizing that it would be through a traditional initial public offering rather than a reverse merger with a special purpose acquisition company, or SPAC.
“SPAC is not something we believe in,” he said. “I think it’s BS.”
Narahari said he believes the company would be attractive to large investors in an IPO, ones who would be focused like him on the long term. He said he hopes HighRadius “outlasts all of us, including me.”
Ben Weinberg, managing director at Susquehanna Growth Equity, has been a longtime investor in HighRadius, saying it was already in a stronger position than many startups when it first received outside investment because it had bootstrapped in its early days. Being based in Houston, “they weren’t inundated with venture capital” at first, forcing them to pay closer attention to the needs of their customers, Weinberg said.
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