B2B venture capital may be in a bit of a slump this week. Funding surpassed $15.3 million, at least, with investors targeting alternative lending and the accounts receivable spaces. Whether it’s a temporary lull or a sign of an impending dry spell for the industry is anyone’s guess. But PYMNTS focuses on this week’s winners, breaking down all the funding activity below.
Accounts Receivable
Landing $5.3 million in fresh funding, accounts receivable automation firm YayPay plans to focus on building up its staff and rolling out more order-to-cash services. The company revealed the funding this week, provided by QED Investors, Birchmere, Fifth Third Capital, 500 FinTech Fund, Aspect Ventures, Gaingels, Techstars and Zelkova. To date, YayPay said it has seen 150,000 invoices processed through its platform. The company integrates machine learning and artificial intelligence to automate the AR process, claiming that its clients can reduce Days Sales Outstanding by as much as 25 percent.
SMB Lending
India’s alternative SMB lending space is having a moment. The latest player to secure funding is Finova Capital, which revealed Series A funding raised from Sequoia India — though the firm declined to reveal how much. Reports said the company is planning to use the investment to expand across India, with a goal of having 15 branches in the country by the end of the fiscal year. So far, Finova Capital said it has provided funding to more than 500 small businesses since launching in 2016.
We told you India’s alternative finance market is having a moment. Rubique said it is planning to raise $20 million in venture capital, with plans to complete the fundraising in October, reports said. So far, the company has secured $7 million in funding, with $1.5 million of it coming in the form of seed capital. Kalaari Capital, Globevestor and YourNext Angel Fund have participated in the funding so far, reports said. Rubique operates an SMB finance platform to match borrowers with investors, which include banks and non-bank financial companies. The company said it plans to use the funding to acquire talent, build out its infrastructure and boost marketing efforts.
Miscellaneous
Indonesian startup Rework aims to help businesses find space for employees to work by operating venues that professionals can rent out. The company announced news that it raised $3 million from a variety of funders, including ATM Capital and Convergence Ventures, with backers coming from China, India and the U.S. India’s Unicorn, China’s UrWork, and California’s Social Capital also participated in the funding, according to reports. Rework launched in 2016 and said it will use the funds to expand across Indonesia, with a particular focus on small- and medium-sized businesses. The company also said it plans to host networking and other events for startups.
Honorable Mention
U.K.-based Reward Finance Group, an alternative lender that secured nearly $53.6 million from Foresight Group, said it will be able to double its SMB financing capacity thanks to the secured loan note facility, announced this week.
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