B2B Payments

Variety Of B2B FinTech Funding — Not Value — Showcases Investor Excitement

Investor interest in the B2B FinTech space is certainly off to a bright start this year. While venture capital (VC) investment rounds this week were quite modest, ranging from about $1 million to $24 million, backers jumped into an array of industries, including B2B payments, expense management, corporate banking, alternative lending and B2B eCommerce, to name a few. In total, more than $66 million went to B2B startups this week — but it’s the volume and variety of the investment rounds, not the value, that highlight VCs’ excitement in corporate finance and payments.


B2B Payments


With $4 million in Series A funding, B2B payments network Finexio will continue to focus on getting paper out of the accounts payable (AP) department. The firm, based in the U.S., uses straight-through processing and closed-loop payment networks to streamline payments from AP to accounts receivable departments, reducing the need for manual data entry on the receiving end. The funding was led by James R. Heistand, Finexio said, with participation from Florida Funders, Loeb.nyc, Zach Coelius, Mobile Financial Partners and angel investors.


Alternative Lending


U.K. policymakers have taken steps to address the nation’s late payments problem, but one FinTech startup, Previse, based in London, wants to tackle the issue as well. The company said it secured a more than $1 million grant from government-backed Scottish Enterprise, which Previse said will go toward expansion into Scotland. Previse deploys artificial intelligence (AI) to enable large companies to pay their small suppliers on the same day they receive an invoice via a financing solution; its AI technology analyzes borrower risk. The funds will undoubtedly support the company as it prepares for the rollout of its platform.


Corporate Banking


Denmark’s Cardlay announced $5 million in new funding this week for its FinTech services offered directly to financial institutions. Investors at SEED Capital and SEB Venture Capital provided the investment, Cardlay said. The company provides banks with a front-end platform for their commercial clients that includes payment card functionalities, travel expense management and other features. In helping banks better compete with FinTechs, Cardlay said it is also focused on helping bank partners access new revenue streams, develop their digital corporate customer retention strategies and deploy Big Data technologies.



NiYO Solutions

India’s NiYO Solutions just secured $13.2 million in Series A funding, the firm said this week, as it looks to expand its payroll platform across the country. NiYO said it will use the investment on product development and expanding its staff. Social Capital, JS Capital LLc, Horizons Ventures and existing backer Prime Venture Partners all participated in the investment round, reports said. NiYO’s payroll platform includes salary accounts as well as other solutions for salaried employees, including corporate and travel card products, a reimbursement account and meal cards.


Expense Management


Belgium-based MobileXpense landed more than $24 million in funding from Fortino Capital, reports this week said. MobileXpense targets the travel industry with mid-market and enterprise-grade expense management technology; the funds will go toward boosting its focus on international expansion. Funds were provided by Fortino’s Digital Growth Fund, reports noted.


B2B eCommerce


B2B eCommerce platform WOTU announced pre-Series A funding this week, according to reports in VC Circle. While the amount raised was not disclosed, reports said Claris Capital and Mumbai Angels Network have provided the funds. WOTU, based in India, operates in the food and beverages market and enables industry players to procure goods online; the new investment will go toward expansion across India, the firm told reporters.


Human Resources


Harver landed $4.2 million in more funding, bringing its total Series A investment up to $12.3 million, reports this week said. The U.S. company provides artificial intelligence-based hiring and talent-matching services. Funds were provided by Insight Venture Partners. Harver aims to disrupt the hiring process by using AI technology, not traditional resumes, to ensure employers and employees get appropriately matched. The company said it will use the funds to expand its team and focus on growth.



Nozomi Networks

Offering cybersecurity and operational visibility for industrial control systems, Nozomi Networks, based in San Francisco, said this week it raised $15 million in Series B funding led by Invenergy Future Fund. THI Investments, GGV Capital, Lux Capital and Planven Investments SA also participated. The investment will go toward global expansion efforts with a focus on marketing, sales and support, as well as toward product innovation, Nozomi said. Its key industry targets are companies in the energy, manufacturing, mining, utilities and other markets.



About: Accelerating The Real-Time Payments Demand Curve:What Banks Need To Know About What Consumers Want And Need, PYMNTS  examines consumers’ understanding of real-time payments and the methods they use for different types of payments. The report explores consumers’ interest in real-time payments and their willingness to switch to financial institutions that offer such capabilities.