B2B Trade, Finance And Payments Drive VC Funding For FinTechs
Table of contents:
The B2B venture capital boom continues this week with about $118 million in combined funding for a wide variety of FinTechs. Investors dug their heels into B2B trade, financing and payments solutions for small and medium-sized businesses (SMBs), with eCommerce-as-a-Service taking the top spot this week. Plus, more funding is on the way for a FinTech applying the buy now, pay later (BNPL) model to B2B transactions.
While the company did not disclose exactly how much it raised, Colombia’s Treinta revealed it secured more than $500,000 for its bookkeeping and inventory management technology designed for small businesses across Latin America. The funding is a combination of friends-and-family investment, investment from Y Combinator and a previous round of $220,000 secured earlier this year, according to reports. The company said it will use the funding to expand its product offering to micro-businesses, with the potential to introduce a financing solution.
Playter Pay, a U.K.-based B2B FinTech that enables BNPL solutions for the small business hiring and talent recruitment space, has announced $1.38 million in funding from a “consortium of investors,” the company said in a press release. The startup noted that it plans to use the investment to bolster its own team, as well as to invest in marketing and to strengthen the customer experience.
Washington State’s Level operates a gig worker financing solution that connects gig professionals to credit underwritten by their freelance income. The company announced a $1.5 million pre-seed funding round with investors at NextView and Untapped, with participation by TechStars, Acument and AScend.vc. The company will use the funds to expand its service offering to professionals within the gig economy.
Cross-border B2B trade platform GlobalFair, based in India, announced a $2 million seed investment round led by Saama Capital and India Quotient, according to YourStory reports. The company, which connects suppliers across India to corporate buyers in markets like the U.S., Vietnam and South Korea, said it will deploy the investment to expand its manufacturer network in India and Vietnam, as well as to fuel growth across verticals.
Based in Spain and the Netherlands, Twinco Capital has just announced a $3.64 million investment round led by Mundi Ventures, with existing investor Finch Capital, as well as unnamed investors, also participating. Reports did not reveal what Twinco plans to do with the investment, but noted that the company operates a supply chain financing solution that enables corporate buyers to connect their suppliers with financing at the point of purchase order.
Corporate payments technology firm Mesh Payments has raised $13 million for its solution that is designed to allow SMBs to manage expenses without relying on a corporate credit card. The funding round was led by TLV Partners, while Meron Capital, R-Squared Ventures and others also participated. The firm said it will put the investment toward sales and marketing initiatives and strategic partnerships.
The $18.64 million raised by U.K.-based Trade Ledger will go toward sales, marketing and customer delivery team expansion, the company recently announced. Investors at Point72 Ventures led the Series A equity round, while Foundation Capital, Court Lorenzini, Hambro Perks and other existing backers also participated. Trade Ledger operates a solution for lenders to finance SMBs through enhanced data and risk mitigation technology.
Payments-as-a-Service startup UNIPaaS has raised $10 million for its technology, which enables marketplaces and B2B Software-as-a-Service companies to embed payments technology within their own platforms. The company, which operates in Israel and the U.K., said TPY Capital led the investment, while Nextdoor CEO Sarah Friar, Plaid COO Eric Sager, Vouch Insurance CEO Sam Hodges and angel investor Gokul Rajaram also participated, as did additional backers. The firm said it will use the investment to further build out its platform and to introduce additional financial service offerings to fuel growth.
France’s Libeo has raised $24.26 million in fresh funding for its technology that facilitates supplier payments without requiring businesses to connect their bank accounts or secure an IBAN. The company announced the Series A investment from DST Global, Serena, LocalGlobe and Breega, in addition to angel investors, according to reports. As it works to expand its API-powered B2B payment platform, Libeo said it will use the funding to grow its workforce.
Another startup from Washington State, Fabric operates a headless eCommerce-as-a-Service platform targeting both B2B and direct-to-consumer brands. The company said in a press release that it has raised $43 million in Series A funding , which it will use to accelerate product development and grow its team. Pointing to data that highlights the growing volumes of eCommerce transactions — with B2B eCommerce expected to reach $1.8 trillion by 2023 — Fabric offers an API-powered solution to streamline its eCommerce strategies. Norwest Venture Partners led the round, while Redpoint Ventures and Sierra Ventures also participated.
A funding round hasn’t been officially secured yet, but TechCrunch reports said that an investment is on the way for Tillit, a BNPL FinTech targeting B2B transactions. The firm is reportedly set to raise new funding from Sequoia, LocalGlobe and Visionaries Club to the tune of about $3 million. Tillit integrates its credit offering at the point of checkout or invoicing for B2B sales, allowing businesses to set up a repayment schedule that can include installment payments.