Ratio Secures $411M to Grow BNPL, Financing Platform for SaaS Firms

B2B FinTech company Ratio has emerged from stealth and announced it has secured $411 million to grow its buy now, pay later (BNPL) and financing platform for Subscription-as-a-Service (SaaS) businesses and other recurring revenue firms.

Ratio allows these firms to provide embedded BNPL services that “granularly match” their customers’ cash flow needs, as well as gain immediate access to the value of new contracts, according to a Thursday (Sept. 15) press release.

“We created Ratio to revolutionize the way that SaaS companies and technology businesses price, get paid and fund their growth,” Ratio Co-Founder and CEO Ashish Srimal said in the release.

The platform includes payments, predictive pricing, financing and a quote-to-cash process — all in a single platform and designed to help subscription-based businesses overcome the challenges of deferred cash flow, discounting and recovering customer acquisition costs, the release stated.

With BNPL, these companies can increase their sales and get immediate access to the value of the customer contract, while also providing flexibility to their customers, per the release.

The platform incorporates Ratio Boost, which is a BNPL payments, optimized pricing and checkout product embedded via application programming interface (API) into the seller’s point-of-sale (POS) systems and processes, and Ratio Trade, a non-dilutive, upfront capital solution that is backed by the user’s portfolio of contracts, according to the release.

“Payment flexibility, intelligent and iterative pricing, combined with a frictionless quote-to-cash process is the new strategic frontier for SaaS growth,” Srimal said in the release. “We use data, machine learning and finance as tools to unlock this growth lever for our customers.”

PYMNTS research has found that as businesses race to provide fully digital payment experiences in the B2B space, and their banks work to support such solutions, many are adopting a “white-label” model.

Read more: B2B Firms Embrace Embedded Finance to Win Millennial Buyers

In this model, a digital platform uses APIs to seamlessly weave bank-provided financial services into eCommerce providers’ customer experience.

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