Pleo have employed Soren Westh Lonning, a financial services executive with over two decades in the sector, at Chr Hansen, WS Audiology and Danish Endurance, as their new CFO. Bringing in a CFO is, symbolically, reflective of a company looking to get their accounting regulations in order for a potential listing. Lonning expressed the desire to bring the organisation into profitability and maturity and keep the business expanding in spite of difficult macroeconomic conditions.
Pleo, a Danish fintech firm, has revealed it has chosen a new chief financial officer, a move signifying it is preparing for an initial public offering. The hire is Soren Westh Lonning, a professional with extensive experience working for such companies as Chr Hansen, WS Audiology, and Danish Endurance. Lonning had his most notable post as CFO at the publicly listed Danish food enzyme maker Chr Hansen, which is worth more than $10 billion, and had EU approval not long ago for a $22 billion merger.
When asked about what his biggest priorities are, Lonning said he will aim to bring the firm to profitability and maturity, as well as continue its growth despite the current climate. He also aims to utilize data to make better decisions as a business. He pointed out that many companies like Pleo face the challenge of finding the best way to balance large-scale growth and profitability. Lonning believes he can contribute to this goal.
Pleo has stated that it is not hurrying to go public, yet the appointment of a new CFO might be seen as a gesture indicating that the company is strengthening its accounting and compliance departments and structures in preparation for a possible stock exchange debut. CEO Jeppe Rindom declared to CNBC that the firm is "constantly looking at alternative ways to finance our growth that would suit our clients best" and that an IPO is a "significant factor", yet "no definitive decisions have been established." He continued, "as part of the prudent decision-making that has guided us to this point, we are mindful of how stock exchange conditions affect publicly traded technology companies and are considering if such a move would be in line with our stakeholders' best interests." Additionally, Rindom said that the addition of Søren Lonning to the team is about "augmenting our financial strategies" at a period of "strong growth" at Pleo, due to market expansion and investments to appeal to mid-market customers. He also noted that due to the enterprise's level of development, it is only logical to think already about an eventual IPO and that the aim is to be "ready" by 2025. He commented, "if you look at the markets today, it is hard to be positive because there have been IPOs this year and, frankly, they have not done well. Therefore, we are not planning to go to market right now." But, Rindom highlighted that they are taking a "thoughtful" approach and that preparations for an IPO in a few years must begin soon. By bringing on Lonning, Rindom stated that Pleo will have "plenty of possibilities" for an IPO, and that it is refining its processes in relation to accounting, danger and compliance "so that we can mature in such a way that also aligns with an eventual IPO, if that should be necessary."
Pleo has recently made strides in the world of credit, launching overdrafts for customers as part of a larger product revamp. Looking toward the future, the company has indicated its intention to offer a broader range of credit products. Their products give financial executives such as CFOs and senior accountants visibility into their cash flows and assist them in making smart expense decisions. As lending is considered a more lucrative avenue than payment fees, and interest rates are higher at the moment, the timing is right for Pleo. The firm, founded in Copenhagen in 2015, offers a single platform connected to a company-branded card that enables even more comprehensive tracking of spending and streamlined expense filing. Last valued at a private valuation of $4.7 billion, Pleo's competitors include SAP's Concur, Brex (U.S.), Soldo (U.K.), and Spendesk (France). Having raised over $434 million in funding, their backers include Coatue, Bain Capital Ventures, Thrive Capital, Creandum and Seedcamp.
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