Coupa May Go On Takeover Spree Post-IPO

Corporate expense management firm Coupa is ready to go public, and sources are now revealing new details about the plans for the firm post-IPO.

Reports by Business Travel News late last week said Coupa is likely to use the funds raised from the initial public offering to finance acquisitions. Founder and head of strategy at research firm Azul Partners, Jason Busch, told BTN that Coupa will continue its M&A spree following acquisitions of TripScanner, InvoiceSmash and ZenPurchase over the last two years.

“Right now, the capital market and M&A environment will favor those doing acquisitions [over] those being acquired because it’s more challenging today than it was six to nine months ago to raise funds,” he told the publication.

He added that the T&E company is more interested in integrating other companies’ solutions into its platform as opposed to taking over firms for additional revenue streams. It’s also seeking to onboard more talent.

Meanwhile, Busch said the IPO “will essentially give them much greater awareness in the broader market and provide them with a potential war chest to go out and do more around travel and expense as well.”

Earlier this month, reports confirmed the rumors of a Coupa IPO when the company filed its S-1, stating that it will seek to raise $75 million on the Nasdaq Global Market. It will trade under the COUP symbol. In its filing, Coupa said that it does not expect to turn a profit in the near future.

“We have a history of cumulative losses, and we do not expect to be profitable for the foreseeable future,” the company stated.

But the company has won big with investors, joining the Unicorn Club after an $80 million funding round last year, provided by T. Rowe Price Associates, Iconiq Capital and Premji Invest.