Mexico City-based startup Mendel has raised $35 million in a Series B round of funding, it exclusively told TechCrunch. This latest capital infusion brings the total equity funding to $60 million and $50 million via a credit facility, following a $15 million Series A round and $20 million in debt in December 2021.

Mendel's mission is to automate most of the manual operations for an enterprise CFO, providing a one-stop shop for all B2B spend. Its platform integrates expense management, payments, and corporate travel, giving CFOs and finance teams in Latin America real-time visibility and control over their spend. Co-CEO and co-founder Alan Karpovsky stated that the company aims to address the complex, country-specific regulations in the region, such as tax codes, invoicing requirements, and multi-currency workflows.

The company's revenue model is based on a combination of SaaS fees for its expense management and travel tool, interchange fees from credit cards, and a take rate from its bill pay product. Mendel believes its focus on large, complex organizations that require multi-entity, multi-currency, multi-credit-line, and deep ERP integrations sets it apart from other players in the market.

Base10 Partners led the latest round, with participation from new investors PayPal Ventures and Endeavor Catalyst, as well as existing backers Infinity Ventures, Industry Ventures, and Hi.vc. Base10 Partner Jason Kong highlighted Mendel's unique positioning as a spend management platform for large companies in underserved but growing Latin America, citing its high capital efficiency and ability to replace legacy solutions like SAP Concur.

Mendel has grown its employee base from 64 to 80 over the past year and plans to expand geographically, currently operating in Mexico and Argentina with around 500 customers, including Mercado Libre, FEMSA, Adecco, and McDonald's. The company aims to enter Chile, Colombia, and Peru in 2025 and Brazil in 2026, with a focus on consolidating the largest Spanish-speaking market in Latin America before starting geo-expansion.

In a competitive landscape that includes Clara and Jeeves, another Y Combinator alum, Mendel's focus on large enterprises and its ability to charge recurring SaaS fees rather than relying exclusively on interchange revenue or lending-based models sets it apart. With its latest funding, Mendel is poised to continue its growth and expansion in the Latin American market, providing a much-needed solution for corporate spend management in the region.

While Mendel declined to reveal its valuation, Karpovsky noted that the round reflected "a significant step up" from the company's previous raise. The company also reported an almost 2.5x year-over-year growth in annual recurring revenue (ARR), with gross margins of over 75%. Mendel anticipates reaching profitability by late 2025, according to Karpovsky.

As Mendel continues to grow and expand its presence in Latin America, its unique positioning and focus on large enterprises make it an attractive solution for companies in the region. With its latest funding, the company is well-positioned to achieve its goal of becoming a one-stop shop for B2B spend in Latin America.