Paystand, a blockchain-enabled B2B payments provider based in the US, has expanded its presence into Latin America (LATAM) with the purchase of Mexican peer Yaydoo.
The scale of the combined business is anticipated to pave the way for an IPO in the coming two years.
This deal, whose financial terms were not divulged, is expected to make commercial blockchain-based solutions easily available throughout the Americas.
Both Paystand and Yaydoo offer accounts payable (AP) and accounts receivable (AR) solutions to serve companies of all sizes in the US and LATAM. They have also built B2B decentralised finance (DeFi) payment networks.
Yaydoo operates in Mexico, Colombia, Peru and Chile, while Paystand focuses on the US and Canada markets.
Merging the two, in what is claimed to be one of the biggest technology amalgamations in Mexico and LATAM, has created a new DeFi fintech unicorn.
The consolidated entity will provide access to new markets, solutions, distribution networks and talent.
Its offerings will be distributed via current networks and integration associates.
Both the companies have already formed global integrations with Oracle NetSuite, Sage Intacct, Xero, and Mexico’s CONTPAQi.
PayStand CEO Jeremy Almond said: “Together, PayStand and Yaydoo will redefine the boundaries of B2B fintech across the continent. The combined company will be one of the first global B2B blockchain platforms at a significant scale.
“The resulting company will have processed over $5bn in payments, added 300 additional employees, and built a network of over 500,000 connected businesses, the largest of any commercial B2B blockchains in the world.”
As per Goldman Sachs, the B2B payments market worldwide reached a value of $940bn last year, with AR/AP software representing $130bn of the entire market size.
It also stated that less than 5% of firms are digitised in LATAM, which means B2B payments in countries like Mexico and other developing markets has a potential to grow.
In July last year, Paystand raised $50m in a Series C funding round led by NewView Capital.