Funding B2B FinTechs Targeting Business Finance
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Whether via corporate cards, trade finance or loans, the B2B FinTech startups that raised funding this week were the ones that help other businesses access capital. It’s the latest signal of a potential rebound of venture capitalist attention for the alternative corporate finance industry, but it was a cash flow management FinTech that took the top spot this time.
Blockchain trade finance startup PolyTrade, based in Singapore, announced $1.2 million in funding from Polygon’s Sandeep Nailwal, Master Ventures, Orion Protocol, AU21 Capital and others. In addition to the funding, PolyTrade secured several strategic partnerships as it gears up for an official launch. Next, it plans to focus on the development of its mobile apps and web interface, while also developing and launching new products and services.
India’s FarMart is an AgriTech startup that connects food and agriculture businesses connect to retail buyers, with features focused on price optimization, logistics and payments. The company recently announced a $2.4 million pre-Series A round led by Omidyar Network India and Avaana Capital, which the firm said it will use for product development and scaling. Existing investors Indian Angel Network and LetsVenture also contributed to the round, reports said.
Corporate card startup Kodo, based in India, saw support from one of its larger industry peers, Brex, which participated in an $8.75 million seed funding round. The company also saw investment from Goat Capital, Pioneer Fund, Y Combinator and others, reports said, adding that the startup will use the investment to focus on growth through new hires across its engineering, product, sales, credit and operations teams. Targeting small businesses and startups, Kodo streamlines the commercial card application and approval process, while integrating expense management features in its card offering.
U.K.-based Traydstream raised $8 million in Series A funding led by Spearhead Capital, with participation from AFG Partners and several family offices, the company said. The trade finance FinTech automates a range of workflows, including document checking and digitization, using technologies like blockchain and machine learning. In a statement, the firm’s CEO Sameer Sehgal said the funding allows the company to invest in its infrastructure and team.
Another corporate card startup, this one based in Mexico, has landed funding to the tune of $30 million. Clara, which offers startups and larger businesses in the country a digital spending and expense management solution, will use the investment to enhance underwriting and hire new staff as it works on expansion. Reports did not indicate the investors that provided the investment.
Though it positions itself as a buy now, pay later (BNPL) FinTech for B2B payments, Resolve acknowledges that the BNPL model is nothing new to B2B transactions. Its trade credit solution aims to streamline the traditional workflow by embedding its billing technology on other businesses’ B2B eCommerce and finance platforms, and automating processes around establishing net terms. The company has raised $60 million, it said in a press release, provided by Initialized Capital, KSD Capital, Haystack VC, Commerce Ventures, Clocktower Ventures and Affirm — out of which Resolve was created. The equity and asset funding will be used to scale, the firm said.
Focused on eCommerce merchants, Wayflyer connects businesses to revenue-based financing. The firm has just raised $76 million in Series A funding for its technology. Left Lane Capital led the round, which also saw participation from “Partners” of DST Global, QED Investors, Speedinvest and Zinal Growth, reports in TechCrunch said. Based in Ireland, Wayflyer aims to help eCommerce businesses improve cash flow through expanded access to funding, which is repaid based on revenue flow. The company said it will use the investment to invest in product development with a continued focus on eCommerce firms.
France’s Agicap, which offers businesses a cash flow management solution, has just secured the largest funding round in this week’s roundup. The company raised $100 million in Series B funding from Greenoaks, while BlackFin Capital Partners and Partech also participated. Using open banking, the solution connects to clients’ bank accounts for real-time cash management and financial monitoring. Additional integrations are supported for accounting and invoicing solutions, reports noted. Designed for smaller businesses, Agicap said it will use the investment to fuel international expansion, with plans to debut in 10 new geographic markets in the coming months and to also expand its team in support of that effort.
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