There are some B2B FinTech segments that are mainstays with investors. Companies like alternative small business (SMB) lenders or accounting solutions providers, for instance, remain popular investment targets. This week, though, investors revealed their appetite for B2B FinTech firms that can multitask.
The largest investment rounds landed at companies offering full-suite services, like South Africa’s Yoco, which offers small business enterprise software, performance analytics and a point-of-sale (POS) system. Another company includes Portal Finance, which works with factoring firms, banks and large enterprises to improve working capital through enhancing SMBs’ access to finance and promoting faster supplier payments.
The largest funding round of the week lands at one Indian firm, which will use the funds to focus on growing its suite of services from a B2B eCommerce platform to a source of financing and logistics for its business clients. PYMNTS takes a look at the latest investment rounds, totaling more than $447 million.
A $16 million fundraise for South Africa’s Yoco will help the company focus on product and platform development, expanding distribution channels and adding new staff, reports said this week. Yoco provides businesses with payment management and auditing services, targeting SMBs that struggle to get off cash and paper documents. The firm offers POS solutions, and augments its offering by linking SMBs to additional enterprise software solutions, including performance software. In addition to accepting cash payments, Yoco enables SMBs to track key business metrics, including inventory and sales.
In one of the largest investment rounds of the week, Colombia’s Portal Finance announced $200 million for its lending solution for banks. The company, according to reports, secured the funds through a joint venture with BTG Pactual, Latin America’s largest financial institution. The investment follows a $1.5 million venture capital raise. Reports noted that BTG Pactual’s funding signals growing interest in small business lending technologies in Latin America. Portal provides banks with insight into small business borrowers’ accounts receivable data. By working with SMBs directly, Portal also links banks to additional information for underwriting and is now offering direct loans to SMB users. Since its launch, Portal has introduced other offerings for factoring businesses, as well as services for large corporates that need help managing payments to small suppliers. Reports said Portal is preparing to close a $2.5 million investment round later this year.
Italy-based CashMe links businesses to invoice financing, enabling SMBs to upload unpaid invoices onto the platform to get funded. The company said this week that it secured $1.75 million in equity funding, though it did not disclose the investor. CashMe said it will use the funding to further business expansion, though the company didn’t offer specific details.
India’s B2B eCommerce portal Udaan took the top investment spot with $225 million in Series C venture capital. DST Global and Lightspeed Venture Partners’ global fund led the investment, reports said in India’s The Economic Times this week, citing unnamed sources. Another noteworthy point is Udaan’s newfound status as India’s fastest-growing unicorn, landing a $1 billion valuation only 26 months after launch. In addition to operating an eCommerce platform through which B2B buyers and sellers can connect, Udaan also plans to develop its own supply chain, with warehousing and shipping services for its corporate customers. Furthermore, reports said, the company is developing a lending solution to underwrite working capital loans for corporate buyers using its service.
Business banking app Countingup secured nearly $3 million in fresh funding, reports said in Asset Finance International this week. Based in the U.K., Countingup offers businesses a mobile app that includes banking, bookkeeping and tax reconciliation services. According to reports, more than 4,000 business accounts have opened up on Countingup since its launch last year. The new funding was led by Forward Partners, with Frontline Ventures and JamJar Investments also participating. The company said it will use the investment to focus on enhanced accounting features, as it looks to streamline business financial services through combining accounting and banking offerings.