B2B Payments

B2B Investment Tracker, Sept. 11–18

A healthy $288 million funneled into B2B companies from venture capitalists this past week, with nearly all activity coming from the U.S. and India. The big winner was the treasury management space, but multimillion dollar deals also landed at startups in the B2B eCommerce, Big Data and alternative lending spaces. Even B2B mobile commerce saw some VC action. We break it all down for you below.

Treasury Management: $225M
Big Data: $42M
Alternative Lending: $11.5M
B2B eCommerce: $9M+
B2B mCommerce: $450,000

Big Data

Big Data wasn’t the most popular space this week, but it still secured some Big Funding. On Tuesday (Sept. 15), U.S.-based private equity firm KKR said it spearheaded a $42 million investment in Israel-based Big Data analytics firm Optimal+, which provides data services for the semiconductor market. The investments were made alongside Carmel Ventures and Pitango, reports said, both based in Israel. Reports said the funding will be used to expand Optimal+ into new markets across the globe.

Alternative Lending

Investors, who once pulled back a bit on alternative lending startups earlier this year, are making a comeback in the AltFin space. Fundera will be able to tap deeper into the small business lending segment thanks to an $11.5 million Series B funding round, according to reports Thursday (Sept. 17). Susquehanna Growth Equity led the fundraising, with additional participation from other backers like QED Investors, Khosla Ventures and First Round Capital. The funding will be used to help find a partner for the platform to secure future growth strategies.

[bctt tweet=”Investors, who once pulled back a bit on alternative lending startups earlier this year, are making a comeback.”]

In an interview with TechCrunch, Fundera Founder Jared Hecht said SGE has played a particularly large role on this front. “SGE grilled us harder and got deeper under the hood than anyone we’ve spoken too,” Hecht said. “SGE also shares our passion for bringing transparency to markets where the Internet has had little to no impact and empowering consumers with the tools and services they need to have ultimate buying power.”

Fundera’s latest backing follows its decision to help launch the Small Business Borrowers Bill of Rights to propel fair practices in the small business lending space.

B2B eCommerce

Commerce-as-a-Service software provider Unilog innovates in the B2B realm, providing suppliers and manufacturers a way to reach new corporate buyers through an online sales strategy. On Tuesday (Sept. 15) the firm announced backing from India-based Kalaari Capital, though Unilog declined to specify how much it raised from the investor.

The company, whose headquarters are also situated in India, said it wants to innovate in the B2B eCommerce space, a market that Unilog’s North America President Suchit Bachalli described as “vastly underserved.”

He added that the company’s CIMM2 eCommerce platform — its flagship product — “is helping customers grow their businesses and defend their positions against the giant online marketplaces, like Amazon Business.”

Treasury Management

Accounts payable automation firm AvidXchange secured the largest investment of the week with $225 million from Bain Capital and other venture capitalists, reports said Monday (Sept. 14). The company said it will use the support to grow its staff to up to 600, according to reports.

[bctt tweet=”Accounts payable automation firm AvidXchange secured the largest investment of the week.”]

“We are thrilled with the investor group that we have assembled for this round as it is a combination of investors who have deep financial technology and payments expertise,” said AvidXchange CEO and Cofounder Michael Praeger in a statement, “as well as robust software and SaaS company knowledge in building multibillion dollar tech companies.”

In a separate release that same day, AvidXchange also said it has begun construction on its new Charlotte, North Carolina headquarters. 

B2B mCommerce

Treasury management may have seen the largest backing, but mobile B2B commerce saw one of the most noteworthy investments of the week, signaling that VCs aren’t totally giving up on the potential for B2B players to mass-adopt the mobile phone.

[bctt tweet=”VCs aren’t totally giving up on the potential for B2B players to mass-adopt the mobile phone.”]

Investors put their faith (and cash) in XSTOK this week, with the India-based company announcing Thursday (Sept. 17) that Oliphans Capital secured more than $450,000 for the company that offers a mobile, auction-based marketplace for B2B traders in the fabrics, yarns, textiles and apparels industry.

The tool offers a way for businesses to sell and procure overstocked goods. It was launched in July but has already facilitated nearly 150 transactions through the platform, reports said. The average value of an auction can range between $2,000 and $15,000, according to reports. Thanks to the latest backing, XSTOK said it will look to onboard suppliers from other market segments.

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Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. Check out the February 2019 PYMNTS Digital Fraud Tracker Report

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