B2B Payments

Fraud, Global Payments Catch B2B VC Attention

As more organizations migrate to an online business model, their needs from FinTechs and other third-party service providers are in flux. This week's B2B Venture Capital roundup reflects those changing needs, with B2B fraud mitigation efforts for online businesses emerging as the funding leader. Other investments landed at FinTechs that enable SMBs to manage global payments and banking — other key areas of focus that will be essential to helping businesses recover from financial instability.

Wallex Technologies

Though it didn't disclose how much it raised, Singapore's Wallex Technologies announced a venture funding round led by BAce Capital, SMDV and Skystar Capital, while existing backers also participated. Wallex operates a platform to enable cross-border payments for small- and medium-sized businesses with foreign exchange features. The firm plans to use the investment to expand into new markets and enhance its core product offering, it said. Wallex stressed the importance of supporting SMBs' own global growth to accelerate financial recovery after the COVID-19 crisis.


With a focus on connecting businesses and financial service providers through data, U.K.-based Codat has secured a $10 million funding round, the company said in a blog post. Codat technology integrates small business back-offices with their banking providers to support real-time data integrations. Today, the company has agreements with 50 financial service providers, it noted, and can enable connectivity via API. Index Ventures provided the investment; Codat highlighted the VC firm's previous backing of Plaid, another company focused on enabling data connectivity with FinServ providers. Codat said it plans to use the capital to expand into the U.S.


Indonesia's Ula landed $10.5 million in funding from Sequoia India and Lightspeed India, recent reports said, while OSMDV, Quona Capital, Saison Capital, After Global and other backers also participated. Ula operates a B2B wholesale eCommerce platform that supports custom payment options and delivery solutions, with a focus on connecting retailers to consumer goods. The company plans to use the investment to expand geographically, introduce new product categories, and expand its team, it said.


Investors placed $11.3 million into Netherlands-based Cobase, the company revealed this week, with funding coming from Nordea and Crédit Agricole CIB that will go toward further expansion of operations. The investment also comes as Cobase revealed a strategic partnership with both banks, which will adopt Cobase's technology for its own clients. Cobase operates technology that targets corporations, with the ability to manage multiple bank accounts in a unified platform that can also integrate into their ERP systems. The company also provides companies with value-added features like treasury and cash management tools.


A $23.8 million funding round for France-based iBanFirst is boosting the company's ability to connect small and medium-sized businesses to cross-border payments capabilities. Investors at Elaia and Bpifrance's Large Venture fund provided the investment, according to TechCrunch reports that noted iBanFirst had begun this funding round before the pandemic hit. As a result of market volatility, its lead investor backed out, according to the publication, adding that despite market uncertainty, an unnamed source has reported that iBanFirst's financials remain strong.


Investors gave a boost to the FinTech fraud arena with $123 million in funding for NS8, according to a recent announcement. Investors at Lightspeed Venture Partners led the funding round, which also saw participation from AXA Venture Partners. NS8 uses real-time data analytics and scoring technology to help merchants detect and mitigate fraud risks, with a range of applications from order fraud to ad fraud. Existing customers include Shopify, BigCommerce and other eCommerce platforms; in a statement, CEO Adam Rogas said the investment will help the company "continue to scale to meet the growing demand for fraud prevention technology in the global marketplace."



The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.