Higo, a Mexican B2B company, has raised $23 million in a Series A round, CB Insights reported. The company plans to use the capital to boost its workforce.
Higo works primarily with small- to medium-sized businesses (SMBs), automating vendor payments, bolstering cash flow visibility and providing a consolidated view of business-related invoices, according to the report.
Higo has 31 employees and serves more than 150 businesses that pay $10 million per month to thousands of vendors, including 99minutos.com, Jokr, Benebox, and vinoschidos.mx, the report stated.
The company completed its previous funding round six months ago. Since then, Higo has rolled out a financing product to boost liquidity through an accounts payable (AP) extension, according to the report.
PYMNTS reported in March that Higo has been cutting down on the weightier parts of vendor payments, realizing that the manual processes are not working like they should have been.
Read more: Higo Raises $3.3M for Cloud B2B Payments
“In Mexico, small businesses mostly handle payables with nothing more than spreadsheets and email and legacy bank accounts,” CEO Corcuera Meier said.
The goal behind Higo is to add more automation opportunities for SMBs, with a portion of those being “informal” and making up 23% of the gross domestic product (GDP). The company said it wants to make it so businesses don’t have to use traditional banking. Corcuera said Higo “want[s] to build the Venmo for B2B payments in Latin America.”
Higo assists SMBs so they have less tedious tasks, giving them more time to focus on business. Higo plans to exponentially boost its SMB customers by the end of the year.
In Mexico, invoicing “has to be electronic to be [tax] deductible by law,” Corcuera said. “With our platform, invoices are automatically populated so businesses can have visibility into what has to be paid, what vendors they owe and when they owe.”
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