B2B payments efficiencies are the goals for several of the B2B FinTechs that landed in this week’s venture capital roundup, with one FinTech targeting the freight and logistics sector taking the lead. But B2B eCommerce was the highlight of the group, with B2B eCommerce platforms and related solutions accounting for half of the funding rounds seen this week.
B2B payments technology firm Melio, which provides technology that empowers accounts payable (AP) departments to use commercial cards while facilitating payments to suppliers in their preferred method, recently revealed a partnership with Capital One. In addition to their collaboration that will connect Capital One clients to Melio’s services, Capital One Ventures has reportedly added to Melio’s Series C funding round, though the FinTech declined to disclose how much was provided.
Also declining to disclose how much it raised is PunchOut2Go, which provides technology for businesses to seamlessly transact on B2B eCommerce platforms. The firm revealed in a recent press release that Susquehanna Growth Equity provided the growth investment, marking the FinTech’s first-ever external funding, it said. In addition to the funding, the company is undergoing a leadership change and said the investment will be used to support deeper integrations between supplier eCommerce platforms and corporate buyer procurement portals, as well as to grow on an international scale.
Finley is a FinTech focused on helping businesses raise debt capital. The company just secured venture capital funding to the tune of $3 million in seed investment from Bain Capital Ventures, while Haystack, Nine Four Ventures, TwentyTwo VC and Y Combinator also participated. Finley said in its announcement that while investors are planning to ramp up their focus on providing debt capital and, in particular, private credit to businesses, managing debt capital is a “manual, opaque and error-prone” process. The company’s software aims to streamline those workflows and said it will use the funding to focus on product development.
Egypt’s Fatura is a B2B eCommerce marketplace that has just raised $3 million in pre-Series A investment. The funding round was co-led by Sawari Ventures and Arzan Venture Capital, Mena Bytes reported, while Egypt Ventures, EFG-EV, Cairo Angels and Khwarizmi Ventures participated as well. Fatura focuses on the grocery industry by connecting food retailers to fast moving consumer good (FMCG) wholesalers, with features designed to monitor fulfillment and ensure buyers and suppliers comply with their arrangements. Reports did not indicate what Fatura plans to do with the funding, though noted it is gearing up to launch new services on its platform to support B2B payments.
Pakistan-based B2B eCommerce platform Jugnu raised $3.2 million from Systems Limited as well as angel investors, according to recent Mena Bytes reports. Jugnu and its parent company Saleflo first introduced a sales and distribution platform for the fast-moving consumer goods (FMCG) industry and has since expanded into other verticals, including pharmaceuticals. Saleflo launched Jugnu last year to target the grocery retail arena and support food and beverage procurement. With the new funding, the company will expand to compete with industry rivals, reports said.
With more than $4.7 million in new funding, India-based Jumbotail is looking to expand its B2B digital marketplace that helps local kirana stores and other small food and beverage retailers restock their inventory, manage supply chains, and access payments and financing solutions. The firm secured the funding from Alteria Capital and follows a $25 million equity investment. According to the Economic Times of India, Jumbotail plans to scale its FinTech operations specifically as it strengthens its presence in the B2B grocery market.
Targeting B2B payments friction, Upflow has introduced a technology to streamline accounts receivable workflows and combat late B2B payments. The company, based in France, has raised $15 million for its technology that will be used to strengthen its U.S. operations, grow its staff across the U.S. and Europe, and introduce new product features. New investors from 9yards Capital, as well as individuals, participated in the round, the company said in its blog post.
Small business platform Hello Alice has raised $21 million in Series B funding, CrunchBase reported recently, with the startup planning to deploy the funding to expand its ability to connect small to medium-sized businesses (SMBs) to capital and other B2B services. Led by QED Investors with participation from Backstage Capital, Green Book Ventures, Harbert Growth Partners and How Women Invest, along with individual investors, the funding round will strengthen the Hello Alice platform’s ability to provide a variety of resources to small businesses, with plans to introduce a mobile app and bolster its small business funding center as businesses emerge from the pandemic.
Neobank Novo, which targets SMBs, raised $40.7 million for its technology led by Valar Ventures. Crosslink Capital, Rainfall Ventures, Red Sea Ventures and BoxGroup also participated in the Series A investment, which Novo said will be used to introduce new features for small businesses with a focus on cash flow management. Further, the firm plans to more than double its current staff of 60.
Targeting the luxury, fashion and home goods vertical, JOOR operates a B2B eCommerce platform and has recently raised $46 million in Series D funding for the solution. Macquarie Capital Principal Finance led the round, while existing backers ITOCHU Corporation, Battery Ventures and Canaan Partners also participated. JOOR said in its announcement that it plans to use the funding to focus on further building out its platform with enhanced payments and financing capabilities, as well as to expand the digital wholesale solution into new geographic markets and product categories.
Fresha operates a B2B platform for the wellness and beauty industry, supporting these businesses with customer management and booking. With $100 million in new funding, the company is looking to deepen its presence in the back office with features like data analytics. In addition to tools that support consumer-facing workflows of its business users, Fresha also operates a B2B marketplace for these firms to procure goods for their shops and storefronts. Investors at General Atlantic led the Series C round, according to TechCrunch, while several individual investors, as well as existing backers Partech, Target Global and FJ Labs also participated.
The largest funding round of the week goes to PayCargo, a FinTech focused on streamlining B2B payments in the freight space. Investors placed $125 million in Series B funding in the firm provided by Insight Partners. In its announcement, PayCargo said that it will use the funding to fuel technology investments and security capabilities, as well as to promote growth overall. The funding follows the introduction of several features on the PayCargo platform, including automated refunds, payment advances and invoicing.