Happay, a startup that wants to streamline business expense reports, nabs $500k

Happay, a Bangalore-based startup that makes software to manage business expense reports, announced today it has closed a US$500,000 seed round from AngelPrime.

Businesses that sign up to join Happay receive Visa cards, bound to an RBL Bank account, which are then distributed to employees. When employees make purchases on the businesses’ expense (or withdraw cash from an ATM), they can pay using the Visa card. Each successful transaction will automatically show up in Happay’s corresponding app. Happay users can also track purchases by snapping photographs of receipts, which the app will automatically reformat and record. Businesses, meanwhile, can manage expenses for various teams, set budgets, and access analytics.

There are other startups with similar products on the market. Abacus Labs nabbed US$3.5 million in 2014 for its expense management app, and Expensify has raised US$10 million to date. Those companies monetize by charging monthly per-user subscription fees. Neither offers customers a physical card presently. As is often the case with enterprise SaaS companies, the market will likely grow fragmented, but there’s plenty of opportunity to attract a loyal client base across different industries.

Other companies in AngelPrime’s portfolio include ZipDial, which Twitter purchased earlier this year, and NimbleWireless, a company that makes sensors for facilities that store temperature-sensitive assets.

Editing by Osman Husain, top image by Flickr user Ajith Kumar