Pagero

Facilitating global business through a single connection

Company details

Year Aquired

2017

Location

Sweden

Revenue (2020)

349 mSEK

Sector

SaaS/Compliance

Employees

389

Investment Themes

Tech-Enabled Businesses

Contact

If you want to know more about Pagero please contact Christian Melby at: christian.melby@summaequity.com

Pagero at a glance

Pagero develops and markets Pagero Online, a cloud-based platform that enables customers to send, receive and handle documents electronically within the purchase-to-pay, order-to-cash and logistics-to-pay processes. Pagero also develops a suite of supporting applications to help customers automate their processes and ensure accurately and locally compliant documents, with minimum manual handling. As an open and interoperable multi-tenant cloud platform, Pagero Online is independent of ERP systems and is suitable for companies of all sizes and within all industries – as long as they send or receive business documents.

 

Key developments in 2020

Despite the impact of Covid-19, Pagero's top-linegrowth increased by 12% and the customer base grew by +30% in 2020: The number of companies connected to Pagero's network grew to c.50k during 2020, with more premium brands also starting to join. Pagero now has customers in 135 countries. Pagero increased its international footprint through industry partnerships as well as product development and local establishments in new countries to ensure full compliance in 60+ markets worldwide. Furthermore, the company intensified its product development and added 2 700 new features during 2020 without any interruption to the production environment.

Impact Dimensions

The challenges we face

Compliance, efficiency and waste reduction are increasingly important business considerations. A lack of standardization for business communications and the existence of multiple, closed business networks has led to many trading partners being unable to communicate electronically. Consequently, businesses are struggling to optimize the use of their resources while meeting increasingly stringent regulations and reducing paper waste.

 

%
share of expected VAT revenue lost due to non-compliance across the EU-27. (EUR 137.5bn in 2017)
%
Accounts Payable cost reduction achievable through e-documents

 

What is the outcome?

Pagero's vision is to build the largest, open business network which will enable more governments and businesses to achieve 100% digital document flows and to comply with tax and regulatory requirements. The product helps reduce the VAT gap and increases tax recovery and thus benefits governments worldwide. Moreover, it improves efficiency by automating global format and standards translations and by eliminating errors and busywork in important sectors, e.g. the healthcare and the public sector, where Pagero has a large customer base. This also helps reduce the environmental footprint by reducing companies' use of paper.

 

Who are the stakeholders?

Pagero's services allow businesses to meet changing local regulatory and industry requirements, meaning governments from around the world benefit from Pagero's services by increasing VAT collection. Pagero’s clients experience efficiency gains, and so do their suppliers who also interact with the network, even if they are not themselves customers of Pagero. Moreover, Pagero benefits the environment by reducing the amount of paper used and ensures accurate documents with minimum manual handling.

 

How big is the effect, and does it last?

In 2018, EUR 140bn of VAT revenue is estimated to have been lost due to non- compliance across the EU1 and worldwide this number is estimated to be closer to EUR 500bn2. Furthermore, businesses can achieve a 62% accounts payable cost reduction, reduce their e-document error, and better meet regulatory requirements through e-documents3. Through Pagero's 24 local offices across four continents and network of millions of businesses, Pagero helps both governments close the VAT gap and businesses increase productivity, in developed and developing markets alike. From an environmental perspective, Pagero saved 174k tress by turning its customers' documents digital.

 

If Pagero didn’t exist…

Without Pagero's services, managing e-document compliance regulations per country would be a cumbersome process for businesses worldwide. Pagero currently offers compliance services in over 130 countries, allowing companies to fulfill legal and tax requirements globally and without disruption. There are alternative solutions to Pagero, but arguably none with the same ease of use and price/performance ratio. Moreover, Pagero’s large network gives it an advantage against other players and creates low barriers to entry for Pagero.

 

Impact risk: what can go wrong?

Data protection and cybersecurity are significant issues in the industry. Being a driver of the digital transition also means facing adoption risk from resistance to change within organizations. Risks also include major technology and competitive disruption, but this is regarded as a relatively small risk as Pagero’s network of businesses would be hard for any one competitor to replicate. In order to remain at the forefront with regards to technology, Pagero expanded their R&D team and invested 180 000+ hours into developing their platform and product offering during 2020. Moreover, the company was able to maintain zero downtime and no security breaches across the Pagero Network throughout 2020.

 

Year Aquired

2017

Revenue (2020)

349 mSEK

Employees

389

Investment Themes

Tech-Enabled Businesses

Sector

SaaS/Compliance

Location

Sweden

Contact

If you want to know more about Pagero please contact Christian Melby at: christian.melby@summaequity.com

Website

Video

SDG Alignment
SDG Wheel
SDG 12
SDG 16
KPI reporting
SDG 8

REVENUE (SEKm)

2020
+12%
349
2019
311
2018
267
SDG 16

CLIENT ACCOUNTS IN PAGERO NETWORK

2020
+31%
50k
2019
38k
2018
27k
SDG 16

NUMBER OF MARKETS

2020
135
2019
124
2018
0

Learn more about Pagero

Summa Equity invests in Pagero Group

Summa Equity invests in Pagero Group, a company that develops and markets Pagero Online, a cloud-based network platform for communication of business documents within the purchase-to-pay, order-to-cash and logistic-to-pay (TMS) processes. Summa Equity becomes the largest shareholder. CEO Bengt Nilsson and management will remain invested alongside Summa Equity. Christian Melby, Partner at Summa Equity, said: “In our extensive…

Read the story

Summa Equity invests in Pagero Group

Summa Equity invests in Pagero Group, a company that develops and markets Pagero Online, a cloud-based network platform for communication of business documents within the purchase-to-pay, order-to-cash and logistic-to-pay (TMS) processes. Summa Equity becomes the largest shareholder. CEO Bengt Nilsson and management will remain invested alongside Summa Equity. Christian Melby, Partner at Summa Equity, said: “In our extensive...
Learn more