Fundbox intends to use the proceeds to transform the B2B payments and credit experience to make transactions simple, fast and transparent for businesses
US-based fintech company Fundbox has secured $176m (£141m) in growth equity funding for its Series C round, in addition to a $150m (£120m) credit facility.
The company works on big data analytics, engineering, and predictive modelling to enable small businesses optimise their cash flows with outstanding invoices.
Fundbox enables sellers to quickly increase average order volumes (AOV) and improve close rates by providing more competitive net terms and payment plans to their SMB buyers. It has developed a two-sided payments and credit network to speed up B2B commerce.
Fundbox founder and CEO Eyal Shinar said: “The status quo for B2B transactions is uncertain cash flow and antiquated payment systems, which stifles business growth. If you’re a business owner and don’t know when you’re getting paid next or whether you have the funds to complete a transaction, you lose valuable time and important business opportunities.
“The remedy to this uncertainty is the ability to facilitate quick risk decisions, faster payments, and more flexible terms so our customers have greater predictability related to their revenue and cash flow. This new investment round validates the market opportunity and that our team is on the right path as we continue to focus on transforming B2B commerce for the better.”
Fundbox will use the funding on B2B payments and credit experience platforms
Fundbox intends to use the proceeds to transform the B2B payments and credit experience to make transactions simple, fast and transparent for businesses, enabling better cash flow predictability.
The company said that the Series C round was oversubscribed, witha diverse range of institutional investors have participating in the funding round..
The investors includes Allianz X, Healthcare of Ontario Pension Plan, HarbourVest, 9Yards Capital, Hamilton Lane, SEB Private Equity, Cathay Innovation, Synchrony, MUFG Innovation Partners, Recruit Strategic Partners, GMO Internet Group, and Arbor Ventures.
In addition, existing major investors of the company, including Khosla Ventures, General Catalyst and Spark Capital Growth have also participated in the funding round.
Allianz X is a digital investment unit of the Allianz Group with a portfolio that includes Wealthsimple, N26, C2FO and the Gojek digital platform, and the investment in Fundbox marks its fifth transaction in the Fintech sector.
Allianz X CEO Nazim Cetin said: “Fundbox has demonstrated a track record of success in a competitive B2B fintech market by building the first payment and credit network.
“Our investment underscores the belief that Fundbox will continue setting itself apart in e-commerce by employing technologies that allow corporate customers to focus on growing their business. We look forward to collaborating with Fundbox and supporting its continued growth in an expanding $21 trillion market.”