Storm Ventures revealed our investment in Berlin-based Circula, with a round that also included a couple of other venture capital firms, Germany’s ALSTIN Capital, and Peak from the Netherlands, totaling around $13m.

Here are some reflections on why we expect Circula to continue its growth (the company tripled its revenues in the last 12 months alone) and become the leading player in employee finance.

Tax Compliance, Credit Lines, and Cashback Made Simple

With the help of the app, employees can digitally process all daily transactions, including allowances and mobility budget, and use employee benefits in a tax-compliant fashion. The service also arms employees with corporate credit cards featuring real credit lines, cashbacks, and real-time statements, seamlessly integrated with the app’s workflows.

It’s far too much of a hassle for businesses (and employees themselves) to tackle these details individually. Circula is the first company to successfully integrate so many sophisticated features into one easily understood and simply managed system — all accessible from an intuitive smartphone app.

Another appeal of Circula is its cost-effectiveness. Expense management automation (using OCR, duplicate checks, and policy automations, which eliminates unnecessary admin work for the HR department) enables customers to reduce process costs by up to 75%.

Fully Adapted to the Modern Working Environment

Not only does Circula offer mid-sized and large companies alike a consolidated platform for managing expenses, credit card payments, and corporate benefits, but it focuses on the areas that are important to every employee: meals, mobility, and home office.

The app’s design takes into account the remarkable cultural shift that we observe in the working world today, particularly over the last two years. Simplicity, automation, and appreciation are now expected of modern products and employee experiences.

Integrations rarely present an obstacle to Circula, as it is the only official DATEV API partner that also covers all the other accounting and payroll APIs. You can simply implement Circula into your existing IT landscape in a single day.

Using the DATEV payroll technology, Circula enables customers to seamlessly and automatically transfer accounting records and electronic receipts to their tax advisor in real-time. With this method, customers can easily import all booking data (and receipts that satisfy GoBD compliance) in just a few clicks.

It’s no surprise, then, that Circula has expanded its customer base to over 1,000 companies, including DFL Deutsche Fußball Liga, Lilium, McMakler, Ebner Stolz, and Sportscheck. Close to half a million expenses were digitally processed for these clients in 2021 alone!

Wide-Ranging Appeal to SMBs, Not Just Tech Companies

What stands out about Circula is its firm intention to place employees and their finances at the center of a digital product. The company already benefits from a strong foothold in the traditional sector; 70% of its client base are professional services and established businesses. In a highly fragmented industry, Circula is well-positioned to serve the bulk of the European market: SMBs and mid-sized businesses that are not tech companies.

Circula was founded in 2017 by Nikolai Skatchkov and Roman Leicht, and has received a total of $22m since its inception; earlier rounds involved Capnamic and Main Incubator. Using this latest round of funding, Circula aims to expand its team from 50 to 120 employees, further develop its product, and launch into new European markets this year.

We know this team is destined for great things, as they put process optimization at the heart of what they do. One company has already used the Circula app to dramatically reduce its expense management burden from two weeks down to 36 hours. Despite the fact that it handles so many complicated tasks in a breeze, you can set up Circula within an hour!

P.S. Want to join the business? They are hiring!