B2B FinTech startups have stepped into 2021 with a bang, as industry players raised more than $910 million in combined funding. Backers zeroed-in on a range of industries, including SMB banking and lending. And thanks to several nine-figure investment deals, BaaS, expense management, payroll and B2B eCommerce are now in the spotlight.
Zerone Microsystems Private Limited
Zerone is an India-based startup enabling small and medium-sized businesses to turn smartphones into payment terminals. With $1.3 million in pre-Series A funding recently announced, the company is looking to expand its offering and launch new products that include accounting solutions. Investors at IAN led the round, while TCA and several angel investors also participated, according to reports.
Yesler operates a B2B eCommerce platform for the lumber and building materials industry, and investors at Tech Square Ventures have just led a $3.3 million funding round for the firm. PSL Ventures, SeaChange Fund and Ascend.vc also participated, reports said. With the funding, Yesler plans to invest in its marketing and engineering teams.
With plans to launch a new small business lending bank in the U.K., B-North has announced $3.66 million in “bridge” funding, with the company planning to close a $27 million Series A investment round that will enable it to secure its banking license. According to reports, the company’s most recent investors include a follow-on investment from the Greater Manchester Combined Authority.
India’s BharatPe, which operates a B2B payments platform, is currently in the process of building credit solutions for its business users that will include short-term capital loans. As it pursues this expansion, the company recently announced $8.2 million in debt funding raised from Innoven Capital, according to reports, which follows last year’s $75 million Series C investment round. In a statement, the company’s Group President Suhail Sameer said the debt capital will be key to its lending operations.
Pakistan’s Finja, a small business lender, raised $9 million in Series A funding this week from ICU Ventures, BeeNext, Vostok Emerging Finance, Quona Capital and Gray MacKenzie Engineering Services. The company has secured regulatory licenses for its platform to connect small businesses – with a focus on grocery stores – to solutions that include inventory financing, supplier payment solutions and more. According to an announcement, Finja plans to use the investment to invest in its product and marketing, as well as to expand into new lending portfolios.
Based in California, the neobank Oxygen operates a digital banking platform for both consumers and small businesses. The company announced a Series A investment round recently to the tune of $17 million, with investors that included Runa Capital, S7V, 1984.vc, EFG Hermes, Rucker Park and Inventures, as well as a range of other backers. With the new investment, Oxygen said it will invest in growing its team, accelerating growth and developing new consumer and small business banking products.
France-based small business accounting technology startup Pennylane has secured $18.4 million in funding from existing investors Global Founders Capital and Partech, according to TechCrunch reports. The Software-as-a-Service firm integrates with SMBs’ financial data to automate accounting, while also providing businesses with access to human accountants. The investment will be used to acquire new customers, reports said.
Germany’s Mambu offers a Banking-as-a-Service solution powered by APIs for financial institutions (FIs). Its technology can enable banks to digitize and streamline an array of workflows, including lending and deposits. In support of those offerings, investors have just placed $135 million with the company, which now values Mambu at more than $2 billion, according to TechCrunch. Mambu plans to deploy the investment to expand in its existing markets, as well as to expand into new ones across Asia and South America. TCV led the investment, while Tiger GLobal and Arena Holdings also joined. Existing backers included Bessemer Venture Partners, Runa Capital and Acton Capital Partners.
Corporate spend management startup Divvy is now valued at $1.6 billion, thanks to a $165 million Series D investment announced this week. New backers of the company include Hanaco, PayPal Ventures, Whale Rock and Schonfeld, while previous investors including NEA, Insight Venture Partners, Acrew and Pelion also participated. Divvy will use the funding to invest in product and engineering as it works to create a single platform that combines credit, supplier and spend management.
Payroll Software-as-a-Service company Paycor announced commitments totaling $270 million co-led by Neuberger Berman and Qatar Investment Authority. Additional investors included ClearBridge Investments, Franklin Templeton, Leumi Partners and Teca Partners. The company targets small and medium-sized businesses with payroll and human resources technologies. In a statement, the firm’s CEO Raul Villar, Jr. said the funding “allows Paycor to accelerate our strategy of serving our customers with industry-leading technology and expertise.”
Indian B2B eCommerce company Udaan announced an impressive $280 million funding round – the largest investment this week – with the Series D extension led by Octahedron Capital and Moonstone Capital. Existing backers included Lightspeed Venture Partners, DST Global, GGV Capital, Altimeter Capital and Tencent. TechCrunch reports said Udaan will use the funding “to further our journey of taking eCommerce to the depth and breadth of the country,” according to Co-founder Amod Malviya.