B2B payments startup Finexio announced new funding this week.
The company said Wednesday (Jan. 10) that it secured $4 million in Series A funding led by James R. Heistand. Existing backers Florida Funders, Loeb.nyc, Zach Coelius, Mobile Financial Partners and other angel investors also participated in the oversubscribed round, reports said.
Finexio develops solutions with the aim of reducing companies’ reliance on paper in accounts payable departments. The company plans to use the latest funding to focus on sales and marketing, it said.
“Banks and payment vendors continue to use outdated paper solutions at alarming rates,” said the firm’s founder and CEO Ernest Rolfson in a statement. “Even emails, although electronic, still must be keyed in by accounts receivable departments, often leading to clerical errors that delay payments.
“Finexio is the only solution enabling CFOs to eliminate all checks and related costs from their back office,” he added. “Using our API and smart payment routing technology, our customers can deliver exactly the right payment type, efficiently, and at the right time to their suppliers.”
The company deploys straight-through processing and closed-loop payment networks to streamline B2B transactions from AP departments. Finexio company launched last year and said its gross transaction volume has risen by an average of 78 percent month-over-month.
Finexio raised $1 million in 2016 before its launch. In a conversation with PYMNTS following the funding, Rolfson highlighted some of the challenges that businesses face even when they deploy digital and virtual solutions.
“As it relates to virtual cards and virtual payments, the overwhelming majority — like 99 percent or so — is delivered either by paper, via mail, via fax or the sort of electronic delivery method out there is through secure email,” he explained at the time. “Either through a direct email where there is literally an image of a credit card in an email or through some sort of portal where a supplier that is trying to get paid has to long on, get a card number off the screen and key it into their terminal.”