In the waning days of summer, venture capitalists appear to be in a lull: only $51.2 million was placed with B2B FinTechs this week. Startups in India saw the majority of that activity, while France and the U.S. landed on the board, too, as alternative lending, small business banking, back-office financial management and accounts receivable technology enticed backers. But it was a Singapore startup building out a holistic suite of small business financial services that landed the largest round this week, by far.
Challenger bank Yelo, operating in India, raised an undisclosed sum from Matrix Partners India, Omidyar Network, Flourish VC and Better Capital, Inc 42 reports said this week. Yelo, positioned as a neobank in the country, offers consumers a banking solution, but with the latest funding the company said it will look to introduce banking and other financial services for startups and small businesses. Yelo also plans to expand its team and invest in product development and sales, reports said.
France’s Upflow announced a $2.7 million fundraise this week, according to TechCrunch, with Kima Ventures, eFounders and a range of angel investors all participating. The company aims to reduce days sales outstanding (DSO) by using technology to track unpaid invoices, using technology that sits between a company’s bank account and its customers to identify when invoices have been paid. This information is aggregated over time, allowing business users to obtain trend analysis data on customer payment habits.
Also operating in India, supply chain financing FinTech Cashflo revealed $3.3 million in Series A funding from SAIF Partners, reports in VCCircle said this week. The company collaborates with buyers, suppliers and financiers to offer supply chain financing with a dynamic pricing model, allowing B2B vendors to participate in an invoice discounting program and receive invoice payments earlier. Buyers, meanwhile, optimize working capital by extending days payable outstanding, with a financier stepping in to pay the invoice. Cashflo said it aims to create India’s largest invoice discounting online marketplace and will use the funding to expand its product offering and grow its team.
Yet another India B2B FinTech landed on the board this week with its $5 million Series A investment, reports in Business Standard said. Investors include the nation’s largest B2B eCommerce platform IndiaMart, while India Quotient and Axilor also participated. Vyapar, owed by Simply Vyapar Apps, provides invoice, accounting and inventory management solutions for small- and medium-sized businesses, focusing on tax compliance and financial management for end users. The company’s mobile and desktop app is now used by 88 million registered users, the company said, adding that IndiaMart’s support will enable Vyapar to fuel growth.
Sweden’s Capcito announced this week a $7.7 million funding found for its small business working capital offing. The firm automates financing assessments for SMBs, providing a faster offering to borrowers based on real-time invoice or accounting data. Investors at Schibsted Growth and VC Ventech participated in the funding, a press release said, with Capcito planning to use the investment to expand globally and further strengthen its technology.
Aspire Financial Technologies
The largest investment round of the week went to Aspire, a Singapore-based FinTech is currently in the process of building banking infrastructure to leverage third-party financial service providers’ offerings — and investors have just placed $32.5 million in the firm to support that endeavor. The company aims to offer holistic banking and financial services solutions for small- and medium-sized businesses around the region, with Aspire already operating in Thailand, Indonesia, Vietnam and Singapore, reports in Deal Street Asia said. Investors at Mass-Mutual Ventures Southeast Asia led the round, while existing backers Y Combinator, Beacon Venture Capital, Hummingbird and Picus Capital also participated. Aspire’s current offering includes the AspireAccount, a small business platform offering expense management and a credit limit. The startup said it will use the funding to collaborate with Kasikornbank and introduce new financial products, including accounts payable, remittance and working capital lending solutions.