Fundbox Updates

We’ve Raised $326 Million to Expand the Industry’s First B2B Payments and Credit Network

By Irene Malatesta

This week, we’re proud to announce that we have raised $176 million in growth equity funding for our Series C round. In addition, we have secured a $150 million credit facility.

We plan to use these new investments to continue to transform the B2B payments and credit experience by making transactions simple, fast and transparent so businesses will have greater cash flow predictability.

The Series C round was oversubscribed and includes a diverse range of leading institutional investors, including Allianz X, Healthcare of Ontario Pension Plan (HOOPP), HarbourVest, 9Yards Capital, Hamilton Lane, SEB Private Equity (on behalf of clients), Cathay Innovation, Synchrony, MUFG Innovation Partners Co., Ltd., Recruit Strategic Partners, GMO Internet Group, and Arbor Ventures, as well as participation from the major existing investors including Khosla Ventures, General Catalyst and Spark Capital Growth.

“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,” said Eyal Shinar, Founder and CEO of Fundbox. “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 has demonstrated a track record of success in a competitive B2B fintech market by building the first payment and credit network,” said Nazim Cetin, CEO of Allianz X. “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.”

Unlocking the Net Terms Economy

According to a recent Fundbox research study developed in partnership with PYMNTS, there is an unprecedented $3.1 trillion owed to U.S. firms today, locked up in accounts receivables “limbo.” We call this massive out-of-reach pool of capital the “Net Terms Economy.” By unlocking this capital with faster payment technologies, there is an opportunity to transform millions of businesses that provide or rely on open credit terms to complete a business transaction.

This is why we have built the first two-sided payments and credit network designed specifically to accelerate B2B commerce. With automated machine-learning risk decisions, faster payments to sellers, and more flexible payment terms to the buyer, sellers can focus on increasing average order volumes (AOV) while buyers have greater purchasing confidence and repayment flexibility.

“Fundbox is transforming the entire B2B landscape by freeing up trillions of dollars stuck within the Net Terms Economy,” said Melissa C. Guzy, Co-Founder and Managing Partner at Arbor Ventures. “In order for B2B commerce to meet the needs of a 21st century economy, transactions must happen real-time. The team at Fundbox has a very clear vision of the future of B2B commerce which is why this is a team we chose to back.”

Read the press release on Business Wire.

Here’s a roundup of recent coverage of the news.

Bloomberg: Fintech Fundbox Raises $176 Million to Lend to Business Using AI

The San Francisco-based startup is both a lender and a payments processor for small businesses. It uses artificial intelligence to assess the creditworthiness of potential borrowers, collecting data from other software and services used by the business, as well as their bank accounts. The platform also facilitates quick payments to the borrower’s suppliers. “We are focused on unlocking the working capital that’s tied up in unpaid invoices,” Chief Operating Officer Prashant Fuloria said. By using Fundbox, “the seller gets paid right away,” he added.

Read more in Bloomberg.

Fundbox raises $176 million Series C to build ‘Visa’ for B2B payments

The SF-headquartered startup wants to ultimately transform B2B payments by creating a Visa-like payments network that allows businesses to transact with each other without having to know counter-party risk while also getting everyone paid faster.

Read more in TechCrunch.

Reuters: U.S. business payments firm Fundbox raises $176 million

While the consumer credit and digital payment industry has mushroomed, the transactions between companies have seen little improvement, said Eyal Shinar, CEO of Fundbox.

Read more in Reuters.

Business Insider: Payments-and-lending startup Fundbox just nabbed fresh funding, and now its CEO has his sights set on making it the ‘Visa of B2B’

B2B payments have been relatively slow to digitize, especially compared with transfers that happen between individuals. But that’s starting to change, and some think the space could also see other trends spill over from the broader payments industry — consultant McKinsey said in a report published on Monday that traditional B2B payments that have big scale but are also fragmented could be part of a fresh M&A wave.

Read more in Business Insider.

 

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