B2B Payments

Subscription Business Models Lead B2B VC Funding

Venture capital appears to be picking back up in the B2B technology startup community. This week saw an impressive $324 million in combined funding for a range of B2B FinTechs and other solution providers, including alternative lenders looking to support small businesses as they manage working capital instability. But it was one startup, which helps other businesses launch their own subscription service offerings, that secured the largest round of the week, perhaps reflecting the rising tide of companies looking to shift business models amid market uncertainty.


Small business working capital and factoring company Factris, based in Amsterdam, announced a $5.92 million Series A investment round led by AB Ventures, while current backers Speedinvest and Optima Investments also participated. Factris announced the new funding as it works to onboard third-party factoring companies to become partners and brokers on its platform, propelling its footprint throughout Europe. The funding, in the form of equity, will help expand the company's partnership base and strengthen its position to help businesses manage cash flow amid market volatility, Factris said in a press release.


U.K. alternative lending platform FundingXchange secured $10 million in fresh investment led by Downing Ventures and Gresham House Ventures, while Hambledon Capital also participated, reports in Insider Media said. FundingXchange targets small and medium-sized businesses (SMBs) with its solution to connect firms to capital. Reports did not indicate exactly how FundingXchange will use the investment.


Operating a platform that helps organizations manage their documents, eFileCabinet recently announced $11.5 million in Series C funding led by existing backers Allegis Capital and Signal Peak Ventures. Camden Partners, Allegis Nippon Life and Oquirrh Ventures, all new investors, also participated, according to a press release. The startup, based in Utah, said it plans to focus on its next phase of growth, with plans to push deeper into particular industries including the insurance, healthcare and human resources arenas.


Led by Goldman Sachs, iugu's investment round topped $22.5 million for the Brazilian company, which offers businesses an accounts receivable (AR) and invoicing technology. Reports in Contxto noted Goldman was particularly impressed by the startup's payments platform integrated into technology that can be flexible enough to meet the unique needs of B2B vendors based on how AR departments are structured.


With $25 million in Series C funding, GoExpedi, which operates a supply chain and eCommerce platform for business customers, plans to expand into new markets and accelerate its development of machine learning, robotics and data analytics technologies to help elevate users' procurement operations for the industrial and energy MRO space. Investors at Top Tier Capital partners led the round, which also saw participation from Crosslink Capital, San Jose Pension Fund, CSL Ventures, Bowery Capital, Hack VC and others.


Cross-border business payments technology startup Veem secured $31 million from Truist Ventures, the new venture capital unit of Truist Financial Corporation, recent reports noted. Veem plans to wield the investment to develop a channel partner program that will help the firm expand globally, and will also invest in its product suite and functionality.

Allica Bank

In the U.K., Allica Bank, a FinTech in the process of building a small business challenger bank, raised more than $33.6 million from existing backers, according to a press release. While an impressive feat, Allica Bank doesn't want to stop there: the firm also revealed it is seeking to raise nearly $130 million in total as it expands its product and services line for SMBs. In the meantime, existing backers at Warwick Capital Partners provided the latest injection of funds, which will also go toward potential M&A activity for bank as it seeks to acquire a non-bank small business lender.


Coming in at the top spot in this week's roundup is AppDirect, a B2B technology company that helps other firms launch their own subscription services. The funding, totaling $185 million, comes from global institutional investor Caisse de dépôt et placement du Québec (CDPQ) as well as existing backers in the form of equity, which will fuel the company's "new phase of expansion," AppDirect President and Co-CEO Daniel Saks said in a statement. He added that while companies accelerated their digital sales strategies as a result of the pandemic, many "need assistance integrating new technologies and processes into their operations and making the work at-scale for the long-term."



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.