Indian small to midsize business (SMB) neobank FloBiz recently raised $31 million in Series B funding to add more employees, develop new products, scale its distribution network and soon enter the financial services sector, according to Business Today on Monday (Sept. 20).
This fundraising round was led by Sequoia Capital India, with Think Investments and existing investors Elevation Capital and Beenext.
Other investors who participated in FloBiz’s fundraising round included Vijay Shekhar Sharma of Paytm, Kunal Shah of CRED, Jiten Gupta of Jupiter, Amrish Rau of Pine Labs, Neeraj Arora of HalloApp, Nitin Gupta of Uni Cards, Ankit Tomar of Bizongo, Sayali Karanjkar of PaySense and Krishnan Menon of BukuKas, as well as 9Unicorns and Whiteboard Capital.
A neobank functions like a bank and is backed by a traditional banking institution, also offering other services that cater to a niche audience.
FloBiz launched its flagship product, myBillBook, in January 2020 as a new tool to help companies digitize their invoices, streamline their business accounting platforms and automate their workflows by maintaining their inventories, managing receivables and payables and accessing business reports.
It now has more than 1 million monthly active users who record more than $1 billion in transactions every month on myBillBook, which is available in English, Hindi, Gujarati and Tamil. FloBiz will be adding at least five more languages to the myBillBook platform in the next six months.
“In addition to our current investors, we’re extremely thrilled to have Sequoia Capital India and Think Investments along with such a stellar set of angels back us on our mission,” said Rahul Raj, co-founder and CEO of FloBiz, in the company announcement.
“This raise will help us accelerate projects which have been in the works up till now: building personalizable modules and features into myBillBook, diversifying core product offerings and preparing to roll out financial services,” he said.
FloBiz is aiming to triple its engineering, product and data teams within the next six months. The company raised $10 million in Series A from Elevation Capital and existing investors in March.
Last month, Indian neobank Jupiter raised $45 million in new funding, led by Brazilian FinTech Nubank and Global Founders Capital and existing investors Sequoia Capital and Matrix Partners, with a minority stake held by South Korea’s Mirae Asset.