The company will use the new funding to double down on product development and grow its MSP partner program, FlexPoint said in a Tuesday (May 13) press release.
“Our mission at FlexPoint is to build the B2B payments platform that powers SMB technology spend through our network of MSP partners,” FlexPoint co-founder and CEO Victor Lopez said in the release.
FlexPoint’s platform enables MSPs to automate their payments and grow their revenue, according to the release. It’s used by more than 40,000 businesses.
FlexPoint’s latest funding round brings the company’s total funding raised since its launch in March 2023 to $19.5 million.
“FlexPoint is bringing modern payments software to an underserved segment of the market…,” Jaclyn Freeman Hester, partner at Foundry Group, which led the funding round, said in the release.
When FlexPoint announced the public launch of its payments automation platform in September 2023, Lopez said that while MSPs are “the catalyst for digital transformation,” they still use manual and time-consuming processes for handling payments.
In March 2024, the company said it raised a $5 million equity investment and a $30 million credit facility in a funding round to add to its product and customer success teams and to expand its working capital solutions for MSPs and their clients.
FlexPoint launched a collaboration with cloud commerce marketplace Pax8 in June, saying the partnership would give more MSPs access to tools to improve their operational efficiency and client experience.
In December, FlexPoint launched an artificial intelligence-powered system that processes automated clearing house payments the same day instead of the typical five-day wait, using AI to assess transaction risks.
The system connects to the Federal Reserve’s FedNow® Service infrastructure to process ACH payments and allows businesses of all sizes to send and receive same-day payments.
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