Our Investment in Gynger: The Future of Buying and Selling Software

By Rachel Zabronsky and James Loftus

The global software market is, unsurprisingly, astronomical – in 2024, companies are expected to spend over $1 trillion on software alone, and that spend is growing 10-14% annually (1). This massive spend and growth rate are not simply due to rising prices, but also because companies across the board are using an increasing number of technology solutions to power their business. Research varies, but some estimates say that companies use between 130 and nearly 500 software applications, on average (2, 3). That’s a lot of software! And the cost of it adds up quickly.

Companies have limited options when it comes to financing and managing this spend. Start-ups in particular are looking for solutions to better manage, finance, delay, and smooth out the lumpiness of contract payments. Companies today have a patchwork of solutions in their finance stack (Accounts Receivable [AR]/Accounts Payable [AP], Card, T&E, Procurement, Financing, etc.). And no solution has solved for the friction between buyers and sellers at scale – where buyers are looking for better contract terms, budget saving, payment delay, and a place to manage everything, and vendors are looking for larger upfront commitments, quicker sales cycles, regular renewals, and shorter DSOs. Access to embedded financing solutions that “work” for both buyers and sellers simply have not existed at scale.

Enter Gynger . A NYC-based company?that is building an AR/AP platform?for buyers and sellers of software-as-a-service (SaaS), using embedded financing as the wedge. Gynger has created a unique, embedded, and lightweight solution that solves pain points for both vendors and buyers: where vendors are paid upfront and in full, and close faster sales cycles – all while offering flexible payment terms – and buyers can negotiate better contract terms, as well as push out and smooth out payments.

We're investing in Gynger because we believe that their model of approaching the attractive and large business-to-business (B2B) payments and software management market via financing will give them a distinct advantage. It's clear that embedding payments and financing in both the buying and selling experience for SaaS will allow them to drive massive network effects and create deep relationships.

We’re betting that those deep relationships will allow Gynger to realize their goal to become the next?big AR/AP platform. We both see a distinct need in the market for a platform that encompasses financial services, software management, and capital management efficiencies all built into one product.

Gynger was founded in 2021?by Mark G. (Mark Ghermezian), a repeat founder who took his last company in the customer engagement space public. We’re excited to back Mark and the entire extended Gynger team.

Welcome to the PayPal Ventures portfolio, Gynger!

If you’re interested in exploring careers at Gynger: https://www.gynger.io/careers

If you’re interested in working with Gynger: https://www.gynger.io/

Citations

1 Gartner

2 Statista

3 Productiv