FlexPoint Raises $35 Million for Payments Automation Platform

FlexPoint has raised $35 million in debt and equity to grow its payments automation platform that serves managed services providers (MSPs) and their business clients. 

This funding round includes a $5 million equity investment and a $30 million credit facility, the company said in a Monday (March 18) press release.

FlexPoint will use the new funding to add to its product and customer success teams and to expand its working capital solutions for MSPs and their clients, according to the release.

“These funds will allow us to continue to innovate and bring best-in-class solutions to our current and future MSP partners,” Victor Lopez, co-founder and CEO at FlexPoint, said in the release. 

The company’s platform uses automation and integrations to streamline both payments and cash flow for MSPs and their clients, according to the release. 

FlexPoint was founded in 2022 and currently enables payments for hundreds of customers, the release said.

When announcing its public launch in September, the company said its platform helps MSPs increase visibility into their cash flow and save time on manual processes. At that point, it also began offering long-term financing. 

FlexPoint’s latest funding round comes six months after a September round in which the company raised $2.4 million, according to the Monday press release.

The company’s new credit facility is provided by Tacora Capital while the equity investment was led by Haymaker Ventures, the release said. 

“FlexPoint’s ability to change how MSPs do business and provide them with the greatest view of their internal cash flow make it a strategic product,” Phin Upham, managing partner of Haymaker Ventures, said in the release. “We believe in what FlexPoint offers and the team deploying it.” 

PYMNTS Intelligence has found that full accounts payable (AP) automation allows organizations to cut labor costs and reduce the occurrence of errors, enabling firms to achieve greater accuracy and efficiency in process management compared to those with partial or no automation. 

Over 70% of mid-sized firms that have fully automated AP processes said they are satisfied with the results of their automation, according to “Accounts Payable and Receivable Trends: What’s Next in Automation,” a PYMNTS and American Express collaboration.

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