Today in B2B payments, PayCargo will put $130 million in funding toward global expansion, while B2B payments needs more tech and personal touch to reach their full potential.
Plus, Launch Africa snags $36.3 million for B2B and business-to-business-to-consumer startup investments; Groyyo will boost its manufacturing, product and tech development with new funding; Paysend streamlines small business payments with a new offering; and specialty auto dealers are relying more on technology and less on checks.
Pan African VC Fund Launch Africa Raises $36.3M
Pan-African venture capital fund Launch Africa Ventures has closed its $36.3 million fund, which it used primarily for investments in B2B and business-to-business-to-consumer startups.
According to a Tuesday (June 14) announcement on its website, the Mauritius-based company has helped 108 startups in 21 African countries, including Kuda, a neobank based in Nigeria, and Kenyan B2B eCommerce retail platform MarketForce. Managing partner Zachariah George said Launch Africa would continue to expand its geographic footprint and invest in startups in other countries.
B2B Firms Embrace Embedded Finance to Win Millennial Buyers
Increasingly, businesses care about offering online payment methods, tools and channels in the B2B space that embedded finance can easily power. They have seen millennials and Generation Z show strong preferences for payment solutions such as contactless payments and digital wallets — and those expectations are seeping into the B2B payments ecosystem.
Because many millennials now hold decision-making roles at their organizations, they are involved in their companies’ buying decisions and are seeking more consumer-like B2B payment experiences. Consequently, merchants feel they must “consumerize” their B2B ecosystems away from traditional payment processes — shaping greater opportunities for embedded finance in the B2B payments space.
Indian B2B Startup Groyyo Raises $40M to Expand Its Manufacturing Teams
B2B manufacturing and automation startup Groyyo has raised $40 million in a combination of debt and equity through a Series A funding round that it will use to grow its manufacturing teams and develop its product and technology, VC Circle reported.
The Mumbai-based company plans to increase its employee count in the manufacturing segment of the business in India, Bangladesh, the United States and European Union, according to the report.
Qashio Debuts First UAE Corporate Card and Spend Management Offering
Dubai-based FinTech Qashio is expanding expense management resources and software for B2B transactions across the region with what it said is the first corporate expense management card and software platform for UAE businesses.
Qashio’s expense management platform “enables business owners and finance leaders full visibility and advanced control of all expenses,” the company press release said. The cards can be issued immediately, and companies can choose virtual or physical cards.
Specialty Dealers Turn to Tech to Break Check Dependency
When members of accounts payable (AP) teams at specialty dealers suddenly had to start working remotely during the pandemic lockdowns, they quickly saw that they needed to adopt new ways of doing things.
For many, this accelerated their transition from paper checks to digital payables solutions, enabling them to pay bills online.
PayCargo Raises $130M for Global Expansion
Logistics payments firm PayCargo raised $130 million in a Series C funding round from a single investor, Blackstone Growth. The startup said the funding would go toward global expansion efforts across Asia, the Middle East and Latin America.
Headquartered in Coral Gables, Florida, and founded in 2009 by Chief Operating Officer Juan Dieppa and Chairman Sergio Lemme, PayCargo helps companies in the ocean, air, trucking and rail industries facilitate and manage payments.
Paysend Launches Business Solution to Power Small Business Payments
Paysend is introducing a business solution to provide small- to medium-sized businesses (SMBs) worldwide with end-to-end payments and other tools to boost growth and diversify, according to a Wednesday (June 15) press release.
London-based Paysend is a next-generation money transfer platform that enables people to send funds in any currency directly to a Visa, Mastercard or China UnionPay card in more than 150 countries. The startup works with more than 7 million customers.
B2B Payments Need Tech and TLC to Reach Consumerized Potential
A quartet of payments professionals told PYMNTS in an On the Agenda discussion that commercial payments are taking a cue from the everyday eCommerce experiences, where Amazon and other platforms point the way toward a more streamlined experience as buyers transact with suppliers.
Sarah Billings, senior vice president and head of payment products, operations and strategy at PNC, noted that the consumerization of B2B payments has gotten a “significant push” from the COVID-19 pandemic. Modernizing payments is critical for financial institutions (FIs) and corporations. Upgrading simplifies B2B payments, cash management and invoice reconciliation. It also provides access to supplier portals and real-time revenue reporting.
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