US B2B Startups Fail To Land On The Board

It seems every week we ponder whether there actually exists a drought in venture capital. B2B funding is far from consistent. This week, investors provided more than $22.5 million to B2B startups. It’s not the most the industry has enjoyed, but it’s certainly not the least, either.

Adding to the confusion is the latest data from KPMG International and CB Insights, which revealed that private investment in FinTech startups more than doubled last year. The biggest deals, unsurprisingly, were in the B2C finance segment. Still, B2B startups continue to land on VCs’ radars.

This time, the U.S. failed to make an appearance. Instead, we see multi-million-dollar deals from hotspots like India, China and the U.K. — plus one surprising newcomer.

Commercial Cards

FairFX

In the U.K., foreign exchange payments company FairFX scored nearly $7.5 million from investors, the company announced Monday (March 7). Thanks to backing from Crystal Amber Fund, FairFX said it will now aggressively target the commercial card industry. The payments firm provides both corporate and individual travelers with travel cash and card solutions to ease FX friction. Now, with fresh funding, FairFX will focus on the corporate side of its operations. The firm reported a 32 percent annual turnover growth rate last year, landing 100,000 new customers.

SaaS

Nubox

Here’s a country that doesn’t show up in our venture capital roundup too often: Chile. It’s home to Nubox, a Software-as-a-Service company that provides businesses with cloud-based accounting, payroll and billing solutions.

The company just announced a $12 million funding round led by Riverwood Capital, money that Nubox said it will use to continue expanding into Colombia and to eventually enter Peru. Reports said the startup emphasizes cultural preferences unique to Latin America in building its product. For example, Chilean professionals prefer call centers as opposed to their U.S. counterparts that prefer online customer service support.

Fxiaoke

China’s Alibaba may dominate several verticals, like consumer eCommerce, but one local startup secured new financing to take that leader on in the world of the enterprise. Fxiaoke announced this week that it completed a funding round — though it did not say how much — to challenge Alibaba’s lead in the B2B services market.

Fxiaoke defines itself as a Software-as-a-Service firm, providing companies with software for marketing management via mobile device. By the end of last month, the firm said 300,000 businesses were already using its mobile apps — 70 percent of them were reportedly willing to pay for the services.

Mobile apps are gaining traction among Chinese corporations, reports said, with investors pumping an impressive $100 million into Fxiaoke last year. The latest funding will be used by the company to streamline its services into a one-stop mobile platform, providing an array of tools for the enterprise.

B2B eCommerce

We’ve witnessed India’s frequent appearance on the B2B venture capital roundup over the last year, and we’re not the only ones. Research released this week said Indian B2B startups are set to see a collective valuation of $50 billion by 2025.

Google India and Accel Partners collaborated on the latest research, which also found that, today, the nation’s B2B startups generate $600 million in revenue at a collective valuation of about $3 billion. That means, over the next 10 years, this space is slated for some rapid growth.

This week continues India’s hot streak, with two B2B eCommerce startups landing on the scoreboard, including one which saw funding from Accel Partners itself.

IndiaMART

IndiaMART made headlines this week with news that it secured new funding from Amadeus Capital and other backers to expand the company’s B2B eCommerce operations. IndiaMART and sister site Tolexo.com link corporates with an online procurement solution to search and purchase goods for their firms. With the funding — the exact amount of which was not disclosed — IndiaMART said it will look to scale up operations and refocus efforts on helping other businesses in India launch their digital operations and manage inventory.

The Series C funding will also help IndiaMART tap into what its founder and CEO, Dinesh Agarwal, said is “a huge untapped opportunity.”

“While businesses have been followers in adopting the Internet, more so in India, globally, B2B is a much larger opportunity,” the executive said in a statement. “The Indian B2B sector itself is set to grow by 2.5 times and touch $700 billion by 2020.”

The investment marks Amadeus Capital’s first-ever funding in India.

Ninjacart

This week also saw another India-based B2B eCommerce marketplace startup, Ninjacart, nab funding to the tune of $3 million. The Series A funding was led by Accel Partners, along with Qualcomm Ventures, M&S Partners and Zop Smart, reports said.

Ninjacart first entered the market last year as a hyperlocal grocery delivery service. Only months ago did the firm pivot towards a B2B eCommerce model, now helping grocery stores and other sellers find their produce and stable goods to sell. Key to the success of this operation, the firm said, will be to zero in on the logistics and business strategies of local farmers.