Spendesk Hits Profitability: A Unicorn's Leap Towards Sustainable Growth
- The CFO Office
- Jul 4, 2025
- 3 min read
In the case of thousands of companies that attained unicorn status during the "Peak ZIRP" era of 2022, the subsequent increase in interest rates and rapid pull back of VC funding supplemented by a massive push by investors to balance growth and profitability provided an unprecedented paradigm.
The shift was not easy. Up until then, these companies were riding the "growth at any cost" mantra. Interest rates were at historic lows, money supply had hit all-time highs and there was a lot of liquidity in the capital markets. And then things changed and did so quickly.
Many unicorns struggled to adapt. Some succumbed but there are others who have not only survived but are now finding their footing after making major shifts in their operations and a putting a strong emphasis on profitability.
One such company is a leader in the CFO Office Software space - Spendesk, the AI-powered spend management and procurement platform, has announced a significant milestone, achieving profitability for the first time in Q1 2025. This achievement positions the French unicorn as a leader in the European spend management sector, proving that rapid growth can be effectively balanced with financial sustainability.
We at the CFO Office are especially excited to see this progress as it augurs well for the sector which has been on a major revival path of late with early stage venture capital starting to flow in, heightened M&A activity and now clear and present examples of companies in this space showing financial discipline, growth and profitability.
Spendesk's success is being attributed to a strategic combination of growing revenues and diligently reduced operational costs, with a notable contribution from the company's robust integration of Artificial Intelligence.
Spendesk, founded in 2016, rapidly ascended to unicorn status, securing a €100 million Series C+ round in 2022. The platform has consistently demonstrated impressive growth, surpassing €10 billion in managed spend by 2022 and doubling that to €20 billion in 2024. The company's annual recurring revenue (ARR) exceeded €50 million in 2024 and is projected to reach €60 million by the end of 2025, accompanied by a remarkable 40% growth in gross margins.
This profitability milestone comes after a period of significant strategic adjustments for Spendesk, including a change in governance and internal "staff adjustment measures." The company has focused on three core priorities that have paved the way for this success:
1. Deepening the procurement offering
2. Driving new revenue streams through
3. Spendesk Financial Services (its regulated payment institution), and accelerating internal efficiency with AI.
The impact of AI on Spendesk's operational efficiency has been particularly noteworthy. The company has leveraged AI to automate repetitive tasks, such as validating receipts and invoices, automating spend allocation in bookkeeping, and flagging potential errors. This focus on AI-driven efficiency has not only reduced costs but also freed up finance professionals to concentrate on more strategic initiatives.
Attaining profitability empowers the company to invest even further in innovation, delivering greater value to customers through advanced AI features and deeper insights for spend optimization. This commitment to innovation extends beyond traditional spend management, with plans to explore AI-first opportunities in areas like FP&A and ESG, promising real-time insights and smarter decision-making for finance teams.
Spendesk currently serves over 200,000 business users and has with a very strong market presence in France (50% of revenue) and the UK (40%), as well as growing activity in Germany and Spain. As Spendesk solidifies its position as a profitable leader in the €70 billion Office of the CFO software industry, which is projected to grow by 13% annually through 2028, the company is poised for sustained double-digit growth.
This achievement marks a new chapter for Spendesk, demonstrating the power of strategic focus, disciplined execution, and the transformative potential of AI in the fintech landscape. With profitability secured, Spendesk is now set to further its mission of redefining how companies manage spending, ushering in an era of even greater efficiency and control for finance teams worldwide.
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