C2FO, an online loan marketplace that connects businesses with invoice financing, has announced $200 million in new funding as it looks to expand with small and medium-sized firms.
According to a press release on Wednesday (Aug. 7), SoftBank Vision Fund led the funding, while existing backers Temasek and Union Square Ventures also participated. The company said it aims to grow globally and expand its customer base beyond large, multinational corporates to connect companies of all sizes with working capital for their unpaid invoices.
"We invested in C2FO because we think their disruptive innovation offers a solution to an industry that has traditionally lacked cost-efficient alternatives for businesses of all sizes looking to free up cash quickly," said SoftBank Investment Advisers Managing Partner Akshay Naheta in a statement. "We believe the company's platform provides maximum value for buyers and suppliers and are excited by the company's vision to become the global exchange for working capital."
The company offers early invoice payments at a discount, accounts receivable financing and other working capital products for companies that are matched to investors via a proprietary algorithm. According to C2FO, as of today, an average of more than $1 billion in funding is matched to business borrowers each week.
The new funding follows a $100 million round announced last year, provided by Allianz X and Mubadala Investment Company, among other existing backers. C2FO's focus on small businesses comes after the company published research last year showing that small businesses continue to face significant market uncertainty, despite a strengthening economy and improved access to capital.
In February, C2FO announced a partnership with Euler Hermes to combine trade finance insurance with the working capital solution, enabling businesses on the platform to augment their risk protection against unpaid invoices. Euler Hermes' Single Invoice Cover Product is available to C2FO clients, enabling businesses to optimize their credit terms and acquire insurance on single invoices.