On-Demand Payroll Leads B2B FinTech Funding

On-Demand Payroll Leads B2B FinTech Funding

This week saw B2B FinTechs targeting a range of pain points for business customers around the world, as investors put nearly $462 million in combined funding into the space. From Singapore to the U.K., backers focused on accounts payable (AP) technology, cannabis procurement and small business lending, to name a few – but it was a FinTech specializing in the high-growth market of on-demand payroll that secured the top spot in this week’s roundup.


Finexio’s AP automation technology has attracted another $2.5 million in funding for the company, the company announced this week. At the same time, Finexio pointed to recent growth with a nearly 300 percent year-over-year growth rate for its 2019 gross dollar volume. Though the company did not indicate who provided the investment, the startup said Earthport Chairman Sunil Sabharwal and payments industry executives Gary Staub and David Truetzel have joined the company’s board.


Singapore’s Osome has attracted $3 million in new funding from Target Global, while Phystech Venture and AdFirst also participated, reports in BMMagazine said this week. Osome aims to help its business clients migrate away from paper by providing reporting technology that mixes AI with human expertise. The company said it plans to expand its small business customer base beyond Singapore and into Hong Kong and U.K.

Leaf Trade

Chicago’s Leaf Trade saw $4.5 million in its latest funding round provided by Hyde Park Angels and Duke Software Investments, while Chingona Ventures also participated. The company connects cannabis suppliers with a technology platform to facilitate B2B eCommerce with licensed dispensaries, while streamlining the supply chain from order to fulfillment. Leaf Trade said in its press release that it plans to deploy the investment to expand into new markets and states in the U.S., and also to scale to meet existing customers’ demand. Further, Leaf Trade plans to invest in its engineering and data science operation, the company noted.


Based in Brazil, Cora – which offers small- and medium-sized financing solutions – announced $10 million in new funding this week for its lending tech. According to reports, Kaszek Ventures led the funding, while Ribbit Capital also participated. According to Cora, SMBs are underserved by traditional lenders in Brazil despite accounting for two-thirds of the nation’s GDP. While the firm is focused on SMB lending as it operates in closed beta, reports said Cora will expand its portfolio of B2B products with a focus on payments, credit and financial management as it readies for an official launch.


U.K.-based uncapped has announced $13.16 million in funding for its revenue-based small business financing solution, revealing its capital injection on the same day of its official launch. The company targets startups across Europe, using businesses’ existing data across sales and marketing to provide financing based on projected revenue. Reports noted that the investment came in the form of both equity and debt, meaning the company can use some of the investment to finance its SMB loans. Rocket Internet’s Global Founders Capital, White Start Capital, Seedcamp and a range of angel investors all participated in the round.


Operating in the B2B eCommerce market, Trouva targets brick-and-mortar boutiques with its online marketplace that allows businesses to procure unique pieces for their stores. According to reports, its platform attracted $21.8 million in funding, which will fuel Trouva’s expansion plans beyond the U.K. after launching in Germany last year. Octopus Ventures, C4 Ventures and Downing Ventures led the round, while BGF and LocalGlobe also participated.


Targeting the global eCommerce market, logistics startup Flow announced $37 million in new funding for its cross-border shipping solutions. Investors at New Enterprise Associates led the Series B round, which also saw participation from American Express Ventures and Latitude Ventures. Flow said it plans to deploy the investment to bolster its consulting and advisory services for global eCommerce clients.


One of the largest funding rounds of the week landed with Mexico-based small business lender Konfio, which saw $100 million from SoftBank, reports in Bloomberg said. This marks SoftBank’s third investment round in the country. Konfio plans to deploy the investment to expand its working capital loans to SMBs while also launching new products for its customers. That includes an expansion of its B2B marketplace Konsiento, which offers businesses access to a range of service providers, including office supply vendors and legal services. QEX Investors, Kaszek Ventures and Vostok Emerging Finance also participated, according to reports.


Coming in at the top of this week’s B2B venture capital roundup is Hastee, which raised $270 million from investors for its technology that connects workers to a portion of earned wages on demand. With a focus on easing workers’ reliance on expensive and sometimes predatory payday loans, Hastee works with employers to connect workers to earned wages without disrupting employers’ cash flow. Umbra Capital led the round, reports in Tech Startups said, while IDC Ventures and other backers also participated. In a statement, Hastee Founder and CEO James Herbert said the company will use the funding to expand its presence with more business clients.