Palm, a fintech company based in Sweden and the Netherlands, has secured $6.1 million in seed funding to advance its cash management platform for enterprise treasury teams. The funding aims to support the expansion of the company’s workforce and its growth across Europe, the UK, and the US.
Earlier reports on Palm highlighted the company’s rapid implementation capabilities, contrasting the traditional 8-12 month timeline with Palm’s few weeks. Past analyses also noted the founders’ significant experience in global companies, such as Uber (NYSE:UBER) and PayPal (NASDAQ:PYPL), contributing to their innovative approach in the fintech sector.
Expanding the Team and Market
The seed funding round saw contributions from Speedinvest, Target Global, Upfin, Liquid2, and Greens, along with participation from angel investors like Job van der Voort and Philippe Teixeira da Mota. Palm intends to use the funds to hire across various functions such as product development, engineering, and go-to-market strategies. The company plans to enhance its financial product offerings and expand its presence in key markets.
Co-founders Gurjit Pannu and Christian Sobkowski bring a wealth of experience from their roles in major corporations. Pannu has overseen large treasuries at Uber, Levi’s, and Remote, while Sobkowski has successfully launched financial products at Juni and PayPal.
Innovative Cash Management
Palm’s platform aims to modernize cash management by providing real-time cash flow forecasts, reducing the operational cash balances of enterprises by over 30%. The platform achieves this by offering proactive guidance on fund movements, which helps companies make informed decisions swiftly. According to Sobkowski, their solution significantly outperforms traditional systems, reducing implementation time and providing more accurate future cash flow predictions.
The platform leverages proprietary AI to build forecast models, allowing treasury teams to manage hundreds of bank accounts more efficiently. This capability extends to providing detailed insights into cash activity, enabling strategic decision-making and reducing the need for excessive cash reserves.
Palm’s AI-powered platform offers three main features: Cash Forecasting, Cash Positioning, and Reporting. These features collectively streamline treasury operations, ensuring efficient fund transfers and improved financial oversight. Early feedback from beta users indicates a significant reduction in onboarding time and enhanced business behavior recognition.
Investors Speedinvest and Target Global have expressed confidence in Palm’s potential to revolutionize enterprise treasury operations. Speedinvest emphasizes the need for AI-enabled solutions to replace legacy systems, while Target Global highlights Palm’s ability to automate manual treasury tasks and improve efficiency.
Palm’s platform could significantly benefit enterprise treasury teams by providing more accurate cash flow forecasts and reducing the need for excessive cash reserves. This improvement not only enhances operational efficiency but also frees up capital that can be reinvested into the business or higher-yielding investment vehicles.
