Yaydoo, the leader in B2B transactions with solutions for accounts receivable, payables, and enterprise procurement in LATAM, acquired payments platform Oyster Financial.
The acquisition consolidates Yaydoo's position as the largest B2B payments solution provider in the Latin-American market. Vilash Poovala, CEO of Oyster Financial and previously CTO of Clip, will become Chief Technology Officer of Yaydoo.
The acquisition comes about as a result of the complementary potential of the two companies' solutions, facilitating integration with different accounting systems and ERPs. The combined solution allows payments and collections to be made through various leading financial management software, such as CONTPAQi - all through Yaydoo's centralized platform. The combined organization will leverage Oyster's integrations and functionalities to expand its distribution channels, and customer reach into SMBs, thereby reducing the financial inclusion gap for more companies, by unlocking a wide range of affordable solutions that meet their respective budgets.
Sergio Almaguer, CEO and co-founder of Yaydoo, said: "This acquisition consolidates our leadership in business payments and accelerates our growth, enabling many thousands of companies to collect and pay through the software they already use to run their operations. We are confident that Oyster's technology and Vilash's expertise will enable us to scale our solutions to achieve the impact we are looking for across the Americas."
Oyster Financial was founded in 2018 by Vilash Poovala and Gabriel León with the purpose of providing the best technological tools for businesses to achieve their growth. Since then, Oyster has enabled Mexican SMEs to collect and receive payments within 24 hours and have gained 67,000 customers in only 2 years. In 2021, Oyster launched its payment links product, which allows businesses to have a solution that can be integrated with other accounting and administrative software systems. This allows businesses to automate all customer relationship management (CRM), enterprise resource planning (ERP), inventory monitoring, logistics and accounting systems.
"We are excited to be part of this great vision of growth and look forward to using the combined solutions to help SMBs get the very best in financial services, that will benefit the entrepreneurial ecosystem, demonstrating that there are alternative avenues other than investment." Vilash Poovala, CEO of Oyster said. "By merging with Yaydoo we will be able to focus on addressing platforms that already serve many of these SMBs that are part of our target segment."
Oyster Financial's technology has a payments architecture designed to scale exponentially across the Americas, and it has recently finalized a deal with CONTPAQi, one of Mexico's largest ERP pioneers in accounting and administrative software, to enable businesses to collect and pay through its platform.
Implementing tools to increase SMB's financial liquidity is a necessity that is largely driven by inflation. In the last year, 43% of CFOs prioritized the adoption of business technology solutions, such as CRM and ERP management systems, in their economic recovery strategy, according to the Dynamic Finance Organization survey, conducted by Dun & Bradstreet Finances.
This acquisition is part of a wider market consolidation in B2B payments. Yaydoo, itself, was recently acquired by Paystand, the largest blockchain-enabled B2B payments network, propelling the combined company to the list of fintech unicorns in the Americas. Oyster now joins the Yaydoo and Paystand family of solutions to simplify and decentralize the processes of making and receiving corporate payments in the US and LATAM.
"For Paystand and Yaydoo, adding Oyster is just the beginning of a shared journey of market growth that begins in the United States and Mexico, and positions our combined company as the fastest growing B2B payments network on the continent," said Jeremy Almond, CEO, Paystand.
"During a period of market uncertainty, our value proposition of improving the mission-critical cash cycle for businesses, is a top priority for SME business and finance leaders. Our position as one of the fast-growing and scaled companies in this space is a huge opportunity to transform the global B2B payment market. We look to both grow and consolidate the market, and we have a healthy balance sheet and cash position to be able to do so going forward," concluded Almond, speaking at the front lines of the Money 20/20 conference in Las Vegas, NV.