B2B Payments

B2B Startup Investors Go After The Niche Markets

While there were no mega-deals in the B2B startup funding realm this week, it was still a busy time for companies and investors, with many funders targeting companies operating in less common markets.

In India, where investors have shied away from alternative nonbank financial companies as of late, one small business (SMB) lender managed to secure an impressive funding round. Other investment targets included a Chinese B2B eCommerce platform with a niche focus, an InsurTech startup targeting gig workers and corporate spend management firm.

Kredily

Human resources and payroll startup Kredily, based in India, announced $750,000 in Seed funding, led by Fosun RZ Capital, reports in The News Minute said this week. Delhivery Co-founder Mohit Tandon, Zenefits former VP Engineering Avinash Anand and others also participated, reports said, noting that Kredily plans to deploy the funding to further develop its product and technology. The company will introduce new features to its offering, including expense management, asset management and performance management for its small business users.

Lendingkart

Alternative small business lender Lendingkart secured new funding this week to the tune of $11.5 million from Alteria Capital. The debt funding marks the largest provided to an Indian startup in about two years, reports in VCCircle said. Lendingkart plans to use the funding to finance micro-, small and medium-sized businesses in India, and signals a significant sign of support for a company operating in the market that has recently struggled to raise funding. According to Alteria managing partner Vinod Murali, India’s NBFC industry has experienced significant volatility, but now may be the time for investors to promote growth in the space.

Aptible

With a focus on small business IT security, Aptible announced $12 million in funding this week. Maverick Capital led the Series A round for the San Francisco-based startup, a press release said, while Thrive Capital and Western Technology Investment also participated. Aptible plans to use the investment to launch its Aptible Comply platform, a security management solution that provides companies and SMBs with automated security and compliance tools. The company pointed to a range of use cases for its technology, including vendor risk management, data protection and achieving certification for companies operating in heavily regulated industries.

Growth Street

The U.K.’s Growth Street is on a mission to reshape the small business overdraft with its line of credit solutions for SMBs. The company announced in a press release that existing backers Merian Chrysalis Investment Company and Arts Alliance provided $12.7 million for the company to accelerate its credit-decision capabilities, which take advantage of Open Banking to integrate into SMBs’ accounting platforms and analyze financial data. Growth Street said it also plans to add institutional investors to its platform to diversify its financier base, and to further expand operations within England.

Procurify

B2B FinTech Procurify announced $20 million in fresh funding this week, with the Canadian company landing the Series B investment from Information Venture Partners, which led the round, as well as Runa Capital, HarbourVest Partners, Manulife and Kensington Capital Partner’s BC Tech Fund. Reports in VentureBeat said the investment followed Procurify’s recent additions to its C-Suite. In a statement provided to PYMNTS, Procurify said it will use the funding to continue expanding staff levels, invest in sales and marketing, launch in new markets and expand its offering in the corporate spend management industry.

Arrive Logistics

Targeting the freight brokerage and transportation management industry, Arrive Logistics, based in Texas, secured $25 million from investors. Lead Edge Capital led the Series B funding round for the company, which deploys automated technologies for enhanced third-party logistics management. The company said it would use the funding to focus on growth, accelerate investments in its underlying technology and grow its team, said reports in Supply Chain Management Review.

Zego

The InsurTech market continues its growth trajectory with Zego, which announced $42 million in Series B funding, reports said this week. The U.K. startup targets gig economy workers with a solution to more easily access and manage insurance. The solution impressed Target Global, which led the funding round, while TransferWise Co-founder Taavet Hinrikus also participated. Zego said it will use the investment to expand across Europe, and grow its internal staff.

Haoqipei

One of the largest investment rounds of the week went to China’s Haoqipei, a B2B eCommerce platform designed for the auto parts industry. The company raised $60 million in Series D funding, a press release said, with Access Technology Ventures leading the round. XVC Venture Capital, Jeneration Capital, DCM and SIG also participated. The company did not disclose how it will use the investment, but pointed to the large opportunity in China’s auto parts industry. The firm connects vehicle repair shops with auto part suppliers, while also connecting users to price-comparison services, online payments, and offline warehousing and logistics.

PayFit

Based in France, PayFit operates a payroll and human resources management platform that caught the attention of Eurazeo and Bpifrance, which led the $79 million investment round in the company. The Software-as-a-Service offering positions itself as a company focused on compliance, helping businesses in different countries within Europe to manage labor and wage laws. Reports noted that PayFit also targets its solution to SMBs, as well as their accountants. With the new funding, PayFit plans to expand its offering into new markets, with Italy next in the lineup. It also plans to double its staff by next year.

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