Bulgarian unicorn Payhawk plays down Brex's European challenge

Payhawk, a Bulgarian spend management unicorn, is downplaying the competitive threat posed by the recent EU launch of US rival Brex, citing differing target markets and the fragmented nature of the European market. Payhawk's CEO, Hristo Borisov, suggests that Payhawk is focusing on mid-market and more established companies, differentiating its approach from Brex, which primarily targets startups. This stance underscores Payhawk's strategy to navigate the competitive landscape while maintaining its focus on the European market. Founded in 2018, Payhawk reported €23.4 million in revenue for the year ending December 2024, an 85% increase year-over-year, and currently employs around 480 people. The company, which became Bulgaria's first unicorn in 2022, attributes its revenue growth to its broader service offerings beyond corporate cards, including travel, accounts payable, and procurement services. Approximately 95% of Payhawk's revenues originate from Europe, highlighting its strong foothold in the region. Borisov also highlighted the challenges of the EU market due to its fragmentation, with varying regulations across payment and currency sectors. Payhawk is considering various listing options while also focusing on expanding its presence in the US, where it anticipates revenues could grow to 30% of its overall business within five years. Unlike Brex and Ramp, which offer free cards, Payhawk focuses on a sustainable business model where customers pay for its value-added services.