This week saw a range of B2B segments seeing significant funding from venture capitalists. With investment across the B2B SaaS, workforce management and accounting technology, digital commerce and alternative funding spaces, investors are demonstrating the expanding versatility of business-to-business operations across the globe. With new plans for some of these B2B solutions providers to go public, the success of these industries is sure to only further the diversification of B2B innovation.
PYMNTS reported earlier this week on the rise of e-commerce, a trend that, in turn, increases the demand for B2B software. New Zealand-based Xero is one of these Software-as-a-Service firms tha raised new capital in recent days. The company announced Wednesday (Feb. 25) that Accel Partners and Matrix Capital Management have contributed to nearly $110 million in new funding for the company, which offers accounting software for small- and medium-sized businesses.
Xero told PYMNTS that the new funds will be crucial in strengthening the company’s position within the B2B SaaS industry. “This new investment will fuel Xero’s continued innovation and growth globally, and help it become the small business SaaS platform of choice for entrepreneurs, said Xero’s US President Russell Fujioka.
Specifically, added Fujioka, the new funding will be used to expand Xero within the UK and US. “We continue to pursue the U.S. market in a deliberate way – innovating continuously and listening to customers. We are making progress and are only in the earliest stages of our growth there.”
Also working towards accounting innovation in the SME space is Mobile Worker, a Lithuanian company that revealed new funding earlier this week. Two Norwegian private holdings, JBO Holdings and Uni Macro Holdings, have reportedly raised about $560,000 for Mobile Worker to launch a B2B version of its workforce management solution.
Mobile Worker had already nabbed about 100 business clients for the new product across Norway, Russia, Germany and the US through its beta release. Now, Mobile Worker has officially launched to help companies with a mobile workforce – particularly the construction industry – to more easily help companies track employee work hours and collect data for invoice and expense reporting purposes. The program runs through both a Web and mobile app for Android smartphones. Reports say an iOS version of the mobile app for Apple smartphones will arrive later this year.
Speaking of the rise of e-commerce in B2B operations, venture capitalists have just launched new financial support into one startup offering new solutions to companies looking to take their B2B marketplace online. Described as India’s first-ever online mover of industrial products for suppliers and buyers, Industrybuying.com revealed Wednesday (Feb. 25) that SAIF Partners is supporting the startup with a $2 million investment.
Industrybuying said it would use the capital to develop custom e-commerce products for the corporate buying world. At present, the company says it hosts more than 500 brands and more than 1,000 suppliers for their digital commerce operations. According to SAIF Principal Muku Singhal, investing in Inudstrybuying.com supports the rising demand for B2B digital commerce that has already overhauled the B2C retail space. “Industrybuying.com represents a growing segment of emerging players who are using technology with a differentiated approach in the e-commerce sector,” he said at the time of the announcement. “The amazing momentum the company is experiencing is encouraging and we believe our capital infusion can help them grow faster. The Industrial e-commerce model is proven in the US and Chinese markets. Industrybuying is poised to grow on the back of its better and transparent pricing, product comparison and breadth and the online model for pan India accessibility.”
Back in the US, nonprofit small business lender the Accion US Network announced new funding from MetLife Foundation in the form of $1 million. According to the companies, the backing is intended to boost access to capital for women, minority and immigrant small business owners through Accion’s portal us.accion.org.
Accion added that the grant will also be used to increase visibility of the online platform for small business lending through marketing and advertising, as well as new loan product testing and the integration of new technologies in these loans. The SME lending portal, Accion said, has already processed more than 1,000 loan applications during its six-month pilot launch, distributing more than $1 million in working capital to small businesses across the country.
Alternative lending in Europe, especially, has developed into a massive market. US-based Victory Park Capital has caught on to this trend, offering peer-to-peer lending solutions for small businesses at home and in Europe. Now, the company revealed Wednesday (Feb. 25) that it hopes to raise $310 million through an initial public offering of its unit VPC Specialty Lending Investments, with a debut on the stock market in mid-March. According to Victory Park Capital, Jeffries International is acting as the sole sponsor of the IPO.
Victory Park’s plan to go public was revealed just days after the company announced a new venture of its partnership with another SME alternative lender, Funding Circle. Victory Park reportedly agreed to finance up to $420 million in small business loans that originate through Funding Circle for SMEs in both the US and UK.
In a separate segment of B2B operations, Israel-based SolarEdge also revealed plans to go public earlier this week. The company specializes in solar panel technology optimization, supplying products like data monitoring systems and inverters to solar panel providers in 45 nations across the globe. An IPO in the US, the company said, would hopefully bring in $125 million for the company to expand its B2B operations across the world even further. Prior to its public offering plans, SolarEdge worked with venture capitalists and raised $37 million through multiple funding rounds and more than 10 investors since 2011.
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