The B2B FinTech startup community continues to wade through market disruption with a relatively strong show of support from venture capitalists, despite an overall decline in VC funding across verticals. More is likely on the way, too.
As reported by Fortune this week, UBS Group is planning to establish a new venture capital fund to target corporate FinTech startups and companies looking to disrupt the traditional banking arena. UBS is setting aside hundreds of millions of dollars for the fund, and the bank plans to place between $10 million and $20 million in its investment targets. An unnamed source told the publication that UBS would hold stakes in these companies for at least five years, though details of the initiative are not yet finalized.
"UBS wants to further engage with and support FinTech firms," said UBS Group Chief Information Officer Mike Dargan. "The new venture investment portfolio is a next step to accelerate our innovation and digitization efforts."
In the meantime, B2B investors continue to support growth of the industry. This week's B2B venture capital roundup takes a look at the more than $48 million placed with startups that seek to connect businesses with capital and keep B2B payments flowing through supply chains.
Mexico-based Mati, a payments cybersecurity startup, raised an undisclosed seed investment with equity provided from Spero Ventures, while Kima Ventures, Dorm Room Fund and Blackhorn Ventures also participated. Mati, which first formed in California, is focusing on the Latin American market with expansion into Brazil and Colombia, the company noted, according to Contxto reports. "These countries have the highest payment fraud rates in the world, which makes their identity issues the most interesting," the firm's Co-founder Filip Victor told the publication. As it expands, the company plans to use the funding to bolster its cybersecurity product.
Suryoday Small Finance Bank
India's Suryoday Small Finance Bank has announced an $8.2 million private equity fundraise this week led by Gaja Capital, while Kotak Mahindra Life Company and Lok Capital, among others, also participated, according to a recent TechGraph report. Suryoday targets small and medium-sized businesses with lending services and other banking products. In a statement, the firm's Co-founder and CEO R Baskar Babu said the investment "comes in just as we started reengineering our business processes and digitizing them, including our microfinance vertical, so this is a strong backing to pursue our plans."
TIS, also known as Treasury Intelligence Solutions, is a Germany-based FinTech startup that offers corporates a B2B payments and cash flow management solution. According to a press release, TIS recently secured $20 million led by Aquiline Technology Growth, while 83North, Target Partners and Zobito also participated. The investment will go toward accelerating product development and expansion throughout Europe and the U.S., TIS said.
Its extended Series C funding round has brought Fundbox $20 million in additional equity, the company told PYMNTS in a recent interview. With nearly $200 million in total investment raised, the company will continue to expand its presence in the B2B finance and payments space following the success of its recently launched Fundbox Pay. MUFG Innovation Partners led the round.
Speaking with Karen Webster, Fundbox Founder and CEO Eyal Shinar said the pandemic's global market disruption has heightened the need for financial technologies that sit between B2B buyers and suppliers along the supply chain. According to Shinar, the company's investments in technologies like machine learning, real-time data analytics and automated credit management enable it to "streamline the [B2B payment] process in a way that minimizes the probability of a disaster scenario."