Remember when we mused last week that venture capitalists were beginning to look at the actual payments side of B2B payments? It looks like investors are following through. Sure, much of the more than $86.5 million invested this week landed with startups in areas like payroll and eProcurement, but several millions went to emerging companies tackling friction in the actual payments process of B2B transactions, an area that also saw the largest investment of the week. Find out who it went to as we break down the range of venture capital funding rounds from this week.
In kicking off the week, another B2B payments startup found itself the target of venture capital investment when Aria Systems secured $50 million, announced just before the weekend. Backers included Rembrandt Venture Partners and several others for the Series E round, according to reports.
The company offers a B2B billing platform for other businesses that generate recurring revenue, like Software-as-a-Service firms. Aria has been highlighting its 145 percent year-over-year growth, as well as plans to enter into new verticals, like health care and automotive. One of its next hurdles is the world of the Internet of Things, an area in which Aria sees potential to help IoT device and services players secure a steady flow of revenue from the segment.
On Tuesday (Feb. 23), payroll and HR software provider Namely announced a $30 million funding round from a slew of backers, including Sequoia Capital, Matrix Partners, True Ventures and Greenspring Associates. The followup to last June’s Series C funding brings the total amount Namely has raised to nearly $108 million, according to reports.
Today, Namely said it processes more than $2.5 billion in payroll every year. That volume represents the company’s “maniacal focus on customer success,” according to Sequoia Partner Pat Grady in a statement announcing the latest funding.
“Namely frees people from the shackles of back-office HR administration and enables them to become strategic drivers of employee culture and engagement, which are the foundations on which great companies are built,” he added.
Also on Tuesday, Latvia-based P2P lending startup Mintos announced its own $2.2 million funding round from VC Skillion Ventures. The company acts as a matchmaker between investors and alternative lenders so investors can fund or purchase loans.
While the company has found backers for loans worth more than $14 million for an array of consumer financing products, the platform has also helped facilitate financing of loans for businesses, like invoice financing, according to reports. In an interview with reporters, Mintos said that it is operating in a market that has not seen such services before, having seen loan originations from more than 40 nations through its platform.
Reports from Indonesia revealed Series A funding for Jurnal, a startup that offers small business accounting software solutions in a market with a blossoming SME population. The Monday (Feb. 22) report said Jurnal secured an undisclosed amount from Fenox VC and other investors.
“It’s time the 57 million small and medium enterprises in Indonesia increase their competitiveness in the ASEAN economic community through proper control and management of their finances,” stated East Venture Managing Partner Wilson Cuaca, who also participated in the funding. Jurnal offers services like eInvoicing and cash flow management through a suite of accounting software tools.
On top of payroll, banking and cash flow management, small business owners have a lot on their plate when it comes to finances. Captain401 offers a solution to one aspect of this challenge: setting up employee 401(k) accounts.
The Y Combinator startup announced $3.5 million in new funding on Wednesday (Feb. 24), thanks to names like SoftTech VC, SV Angel, CrunchFund and others, according to reports.
Captain401 said it aims to be the Zenefits of 401(k) — that is, simplify the processing of SMEs setting up 401(k) accounts for employees the way Zenefits streamlines payroll to workers. Reports noted that only 14 percent of SMEs currently offer a retirement savings plan, with an estimated 78 million U.S. workers lacking a 401(k). With the new funding, Captain401 said it will look to boost its product and focus on user acquisition.
Venture capitalists lent a hand to the growth of OfficeRock.com, an online portal through which companies can procure office supplies. The company revealed Thursday (Feb. 25) that it walked away with $800,000 from Jabbar Internet Group, Wamda Capital and other investors, according to reports.
The firm, which operates out of the United Arab Emirates, wants to help procurement play its role in the expected $2.5 billion worth of the nation’s eCommerce market by 2018.
“OfficeRock.com will change the way businesses procure in the region,” said Wamda Capital’s Fares Ghandour in a statement. “They strive to build an eCommerce platform that surpasses expectations and transforms traditional operations; their vision for the future is what will lead them there.”