Investors are diversifying their B2B FinTech goals this week as startups operating in B2B e-commerce and alternative business lending have secured funding. Commercial card innovation has gained attention, however, with new funding for fleet cards, corporate cards for online content creators and a new industry unicorn.
Payhippo
Artificial Intelligence (AI) Business Lending Platform Payhippo, based in Nigeria, raised $ 1 million for its portal from Ventures Platform, Future Africa, Launch Africa and Sherpa Ventures. Investors outside of Africa included Hustle Fund and Mercy Corps Ventures. Payhippo said the new funding will allow the company to hire more engineers and continue to target small and micro businesses that remain underserved by traditional lenders.
Market force
Based in Kenya, Market force announced a $ 2 Million Pre-Series A Funding Round, TechCrunch reported. The company offers B2B distribution services to retail customers, and the new funding will go towards expanding its B2B marketplace RejaReja, which allows retailers to buy and sell products and offers a variety of financial services. Existing investors, P1 Ventures and Y Combinator, participated in the investment cycle, while new funders Launch Africa, V8 Capital, Future Africa, GreenHouse Capital, Rebel Fund, Remapped Ventures and angel investors also contributed, according to reports.
Community capital technology
Seed funding up to $ 2.6 million will help the US business loan market Community capital technology continue to expand. A press release announcing the funding said Naples Technology Ventures led the round, while 412 Venture Fund and Allegheny Financial Group were also involved, as were angel investors. Community Capital plans to use the funding to introduce new functionality to its platform, invest in product innovation, and grow its sales and transaction teams while creating a platform for businesses to access funding. and analysis of business intelligence.
Vahak
india Vahak operates a B2B marketplace to connect trucking companies with owners of individual commercial vehicles. The company raised $ 5.3 million in pre-Series A funding for its technology, with RTP Global leading the pre-series A round. Luxor Capital, Leo Capital and other individual investors also participated, according to reports. Vahak said he will use the investment to fuel technological innovation and expand his customer base to expand the network.
Coast
Fleet card and start of B2B payments Coast secured $ 6 million in seed funding, TechCrunch recently reported, with Better Tomorrow Ventures in the lead. Avid Ventures, Bessemer Venture Partners, BoxGroup, Colle, Foundation Capital, Greycroft and SciFi VC, as well as various angel investors, also contributed. Created to fill a gap in FinTech innovation in fleet payments, Coast offers fleet cards and expense management technology. The company plans to roll out its first fleet map product later this year, and with the new funding, Coast will begin to introduce additional tools and features, including accounting and telematics platform integrations.
Lidya
Another B2B FinTech from the African continent this week is Lidya, an alternative small business lender. Nigerian company announced $ 8.3 million in pre-Series B funding led by Alitheia Capital while Bamboo Capital Partners, Accion Venture Lab and Flourish Ventures also participated. The company has grown throughout Eastern Europe and, with the new financing, plans to continue strengthening its operations in Nigeria, Poland and the Czech Republic.
Toqio
Toqio, based in the UK and Spain, is a FinTech designed for FinTech aspirants. The company is helping third parties launch their own financial services startups with white-label solutions and out-of-the-box technology to deploy their own products, and investors have taken note. The company recently announced $ 9.5 million in seed funding led by Seaya Ventures and Speedinvest, while SIX FinTech Ventures also participated. The investment will be used to help expand Toqio’s team, according to reports.
Arex markets
Invoice factoring startup Arex Markets arrives $ 10.4 million in Series A funding, with Mosaic Ventures and LocalGlobe leading the investment for the Ireland-based company. Existing backers Lifeline Ventures and angel investor Richard Laxer also participated, according to Tech.eu. Arex uses a proprietary algorithm to fund unpaid invoices from small and medium-sized businesses and can integrate with business back-office systems to speed up the funding process. The reports did not indicate what the company planned to do with the funding.
Karat Financial
Another commercial card startup, Karat Financial, has also raised funds to the tune of $ 26 million. The company targets a niche business clientele: online content creators and influencers. Its card product aims to address traditional lenders’ lack of understanding of these digital business models, according to reports, and its model has attracted Series A investment from Union Square Ventures, GGV Capital and Signal Fire. The funds will help the company expand its value proposition beyond lines of credit and other services, including business loans, taxes and more.
Codat
Designed to allow small businesses to easily share and integrate their financial data with third parties, Codat raised $ 40 million in its Series B funding round, led by Tiger Global. Index Ventures and PayPal Ventures, both existing funders, also participated. Codat said it will use the investment to expand its infrastructure that facilitates data sharing, focusing on application programming interfaces (APIs) that can integrate with payroll and commerce platforms. The company also said it plans to expand its existing operations in San Francisco.
Instawork
Digital market Instawork, based in California, helps companies connect with talent across the country and has just raised $ 60 million in Series C funding for the solution. Craft Ventures led the round and Greylock, Corner Ventures, Four River Group, WndrCo and Tilman Fertitta all participated, as did existing backers Benchmark, Spark Capital, GV, Burst Capital and SV Angel. Instawork said it would use the funding to introduce new job classes and serve more industries, as well as to invest in services for hourly professionals, including job training tools.
Pleo
The biggest investment round of the week for the FinTech B2B community goes to Pleo, a corporate card startup that raised $ 150 million in a round that propelled the company to unicorn status. Investors from Bain Capital Ventures and Thrive Capital led the financing, which values ââthe company at $ 1.7 billion, according to reports. Based in Denmark, Pleo said he would use the investment to expand internationally, with a focus on the UK, and to invest in marketing efforts. An introduction to the United States could also be in its future, although Pleo noted that it has not made a final decision on this. However, it is expanding its product offering beyond cards and has introduced invoice management and employee expense reimbursement capabilities, with plans to launch loan services.
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