Fundbox, an artificial intelligence (AI)-powered financial platform that offers small- to medium-sized businesses (SMBs) quick access to business credit, has raised $100 million in a Series D funding round, driving its valuation beyond $1 billion, according to a Tuesday (Nov. 30) press release.
Healthcare of Ontario Pension Plan led the funding round, which also had support from existing investors, Allianz X, Khosla Ventures and the Private Shares Fund, as well as new investors, including Arbor Waypoint Select Fund and a suite of BNY Mellon funds managed by Newton Investment Management North America.
The most recent funding round was fueled by the company’s recent milestones, including surpassing a $100 million yearly revenue run rate and a more than 200% increase in new customer acquisition, according to Fundbox.
The financing will fund the company’s expansion of its product platform and shift into payments via the debut of Flex Pay. Designed to provide small business owners with extra payment options and flexibility for business expenses, Flex Pay provides Fundbox Line of Credit customers with three additional days to pay expenses.
“Fundbox is primed for continued growth as we approach a once-in-a-decade opportunity to drive the recovery and expansion of the small business economy,” said Fundbox CEO Prashant Fuloria. “The addition of Flex Pay to our product offerings is critical as small business owners look to utilize buy now, pay later solutions for business.”
In addition to its BNPL offerings, Fundbox offers its SMB customers access to extra funds in the form of revolving lines of credit with 12-week or 24-week repayment terms, as well as loans with longer repayment terms, according to PYMNTS.
Fundbox’s Insights offerings helps business owners forecast future cash balances.
Since its founding in 2013, Fundbox has exceeded $2.5 billion in transaction volume and connected with more than 325,000 businesses, according to the announcement.