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PayShepherd secures $7M to expand contractor management solution offerins for heavy industries

PayShepherd, a contractor management solution for industrial sites, has closed $7 million CAD in a round of Seed+ funding to expand its target markets across North America and enhance its platform with new capabilities.

This funding will reportedly unlock PayShepherd’s product development strategy of building a comprehensive, frictionless system of record between the contractor and the client. Leveraging its access to millions of data points in heavy industries, PayShepherd plans to further deepen its technology, including the use of Artificial Intelligence, to add exponential value beyond cost management.

“For too long, heavy industry has relied on outdated processes for vendor management, squandering billions of dollars and crucial relationships in the process.”, says Wesley Sessenwein, CEO at PayShepherd. “This investment supports our commitment to helping industrial operators establish lasting relationships with contractors that are founded on accountability and transparency.”

New investor Inovia Capital, a venture capital firm, led the all-equity round, with participation from existing investors Nashville Capital Network, Thin Air Labs, Accelerate Fund III managed by Yaletown Partners with support from A100, as well as undisclosed strategic angel investors. Inovia partner Shawn Abbott is joining PayShepherd’s board as part of the raise.

Pulp & Paper Canada: Can you name any previous pulp and paper projects that PayShepherd has supported? What are some key metrics that show PayShepherd improved their processes?

Wesley Sessenwein: Leaders in pulp and paper such as West Fraser, Mercer, and many more from coast to coast across North America have embraced PayShepherd to streamline their contractor management processes.

Contractor management has historically been defined by immense friction at every step of the way. Over 50 percent of the level of effort or spend required to complete work on-site can be attributed to administrative overhead, both for the facility and the contracting organization.

We care deeply for the North American forestry industry and understand the impact that technology and automation can have on tipping the scales on this equation and improving bottom-line performance.

P&PC: What are some key challenges for contractor management in pulp and paper mills? How does PayShepherd address them?

WS: The pulp and paper industry is facing increased compliance requirements and shrinking profit margins while managing large contracted workforces. Most of them still rely on outdated processes for vendor management. Their digital transformation lag presents an opportunity to improve transparency and accountability and streamline workflows.

Given the complex landscape of service vendor contracts, manual review systems are still common, negatively impacting industries operating in already tight budgetary environments. These systematic shortcomings lead to overspending, safety risks, and legal issues undermining their crucial relationships with vendors and contractors.

Here is where PayShepherd comes into play. Founded in 2018, the company offers a vendor relationship management solution to pulp and paper sites to provide transparency, control, and compliance over their contracted workforce. PayShepherd is a system of record enabling operational efficiency and forecast predictability by centralizing, digitizing, and verifying all cost submissions on labour, equipment, and materials.