B2B FinTech Funders Target Employee Spend, Payroll Tools

Another busy week brought fresh funding to the B2B FinTech arena, with expense management solution providers standing out from the crowd. But as more firms aim to control how employees spend money, it was a technology startup that focused on how professionals pay those employees that took the lead in this roundup.

Chain.io

Supply chain management startup Chain.io has raised $5 million in new funding from Grand Ventures and Mercury, with Honeywell Ventures and Engage also participating. Based in Philadelphia, Chain.io facilitates data integration to help firms within supply chains manage operations and coordination. The company plans to use the investment to focus on growth and expand its team.

Plooto

Small business B2B payments automation FinTech Plooto, based in Canada, announced $6.4 million in Series A funding led by FINTOP Capital, with participation from Luge Capital and Inovia Capital, according to reports. The company offers SMBs a cash flow management platform that combines accounts payable (AP) and accounts receivable (AR) automation, while also offering its Plooto Network to streamline onboarding and enhance efficiencies of moving money between buyer and supplier. Reports said the company will invest in product development and the growth of its sales and marketing team.

Knox Financial

With $10 million in Series A funding, Knox Financial will have new fuel for its financial automation technology designed for property managers. The company offers solutions including banking, bill payment, taxes and compliance. G20 Ventures led the funding round, while Greycroft, Pillar VC, 2LVC and Gaingels also participated, reports said.

Candex

With $20 million in new funding, B2B payments platform Candex will look to expand its offering as a so-called master vendor for organizations looking to streamline supplier payments. Investors at Altos Ventures led the round, while NFX, American Express Ventures and J.P. Morgan also participated. Based in California, Candex aims to tackle what CEO Jeremy Lappin describes as “a glaring failure in how major organizations pay their vendors.”

Payhawk

Corporate card and expense management startup Payhawk has announced $20 million in funding provided by QEX Investors, while Earlybird Digital East also participated, according to recent reports. The company provides a range of features, including the ability for firms to issue corporate cards to employees, manage spend and track invoices, with support for bank account integration. Reports did not reveal what Payhawk plans to do with the investment.

Tribal Credit

California’s Tribal Credit offers spend management and payment cards for small and medium-sized businesses in emerging markets to streamline B2B payments and control expenses. The technology has attracted $34.3 million in fresh funding in the form of debt and Series A venture capital provided by QED Investors and Partners for Growth. Existing backers BECO Capital, Global Ventures, OTG Ventures and Endure Capital also participated, as did new investor Endeavor Catalyst. Tribal Credit said it will use the funding to fuel growth in Mexico in particular.

Chargebee

One of the largest funding rounds of the week goes to Chargebee, a FinTech that helps small and medium-sized businesses manage their subscription payments. The company secured $125 million for the technology, with investors at Sapphire Ventures leading the Series G round for the California firm. Tiger Global and Insight Venture Partners, both existing backers, also participated. The company will be used to ramp up operations as more businesses embrace the Software-as-a-Service model, and will invest in global expansion and strategic partnerships.

Deel

The largest round of the week goes to payroll FinTech Deel, a company that looks to strengthen employees’ choice and control over how they receive compensation while streamlining the back-office workflow of international payroll for employers. The company announced $156 million in Series C funding this week, led by YC Continuity Fund. Andreessen Horowitz and Spark Capital, Dara Khosrowshahi, Lachy Groom, Jeffrey Katzenberg, Jeff Wilke and Anthony Schiller also participated. The company will use the investment to fuel global expansion and set up 80 new entities around the globe, as well as expanding its team and enhancing its product offering.

Up Ahead: Pleo

Corporate expense management company Pleo revealed plans to raise a $100 million Series C funding round in support of its technology that combines smart payment cards with spend control features. In preparation for the new investment, the company announced the rollout of its B2B bill payment feature. The $100 million fundraise is expected to take place later this year, reports said.