VCs Take A Step Back From B2B FinTechs As 2017 Comes To A Close

While more than $100 million in new financing landed at several B2B FinTech companies this week, most actually didn’t come in the form of venture capital (VC). In fact, only three of the six firms that announced funding this week secured investment from VCs. The rest came from institutional investors, family offices and other debt, with the largest landing at an Australia-based payroll company, giving it a boost before its initial public offering (IPO) slated for next year. PYMNTS takes a look at all the funding rounds below.

Cross-Border Payments

Airwallex

Australia-based Airwallex announced $6 million in additional Series A funding this week, led by Square Peg. The latest funding brings the total raised in its Series A round to $19 million, which will be used to focus on expansion across Europe and Asia. Further, Airwallex said it will take advantage of a partnership with Square Peg. The company provides financial institutions with an international payments and foreign exchange (FX) solution to manage corporate transactions; earlier this year, the firm partnered with RailsBank to facilitate connectivity into the U.K. and EU SEPA (Single Euro Payments Area) zones.

Software-as-a-Service

Cloud X

Cloud X didn’t disclose how much it raised, but the company, which provides cloud computing services to small businesses (SMBs), said it landed funding to support further growth, as it targets the accounting industry with its offerings. Twenty-six investors participated in the funding, including family offices and institutions. Reports said Cloud X Partners will focus on expansion of its CloudRunner platform, which uses Software-as-a-Service (SaaS) and cloud-based apps to support small businesses’ need for digital solutions, including accounting, financial management and other business process tools. Its services are geared toward accountants and bookkeepers.

Quinyx

Sweden’s Quinyx has designed HR (human resources) software for businesses to manage tasks, including employee scheduling and payroll integration. The company announced $12 million in fresh funding, reports in TechCrunch said this week, provided by Battery Ventures, whose General Partner, Michael Brown, will join the startup’s board. The company targets businesses with shift-based employees, like fast food restaurants, in need of agile scheduling solutions.

SMB Lending

Cash Suvidha

Based in India, Cash Suvidha announced $2.7 million in institutional debt raised from multiple financial institutions, the company said this week. The funds will be used to focus on growth and to increase its small business loan portfolio, as well as its personal lending operations. The funding follows Cash Suvidha’s partnership with HomeCapital to expand its home loan operations as well. The company has developed its own credit underwriting methodology to provide financing to borrowers and assess creditworthiness using alternative data from social media, spending patterns and personal background, reports said.

Logistics

AxleHire

AxleHire, based in the U.S., also counts some big names as clients, including HelloFresh. The firm provides last-mile logistics and delivery solutions, specializing in quick turnaround by managing warehouses and sorting facilities meant to hold inventory for less than a day. The company recently announced $4.3 million in fresh venture capital led by Acorn Pacific, RGA Ventures and other investors. The funding comes as it aims to hit $1.5 million in revenue by next April, AxleHire said. The company is also deploying robotic technology to enhance its services and plans to launch its own delivery locker system to compete with similar services offered by Amazon.

Payroll

Ascender

While Quinyx dabbles in payroll technology, Australia-based Ascender specializes in providing payroll solutions to its corporate clients. This week the company said it secured $76.6 million in equity financing from mortgage company Potentia Capital. The financing will give the company a boost before it plans a float on the Australian Securities Exchange next year; reports said Ascender is Australia’s largest payroll provider and is said to have a market value exceeding $191 million.