Commerce-as-a-Service Takes The B2B Venture Capital Lead

This week was one of the strongest for B2B FinTech investments, as accounts payable (AP) automation and small business trade finance companies landed impressive funding rounds, with one SMB InsurTech startup reportedly gearing up for a $250 million investment in the near future. But it was an eCommerce-as-a-Service startup that secured the largest funding this week, coming in a $300 million, showcasing investors’ appetite for companies looking to help other businesses with their digital migrations.

Zoop

With $10.85 million in new funding, Brazil’s Zoop will focus on accelerating its growth and the rollout of new digital banking, payments and credit solutions. The company operates a Banking-as-a-Service, mobile payments and financing platform that can be white-labeled for other third-party financial service providers, FinTechs, businesses and others to implement their own financial products and services. Movile led the investment round, a press release said.

Finom

Based in Amsterdam and the U.K., Finom has announced a $12 million investment round for its technology that offers mobile-first financial services for small and medium-sized businesses. The challenger bank said it will use the investment, which is an extension of a funding round announced in April, to fuel growth throughout Europe and to extend licensed activities, as well as develop new products. Investors at Target Global, Cogito Capital, Entree Capital, Avala Capital, Tal Capital, Adfirst Ventures, FJ Labs and Raisin founders participated in the investment, according to Nordic9 reports.

Marco Financial

Miami-based Marco Financial operates a B2B platform that helps small and medium-sized exporters based in Latin America to access working capital and trade finance. The company secured $26 million in new funding, according to a press release, with the investment coming from Struck Capital and Antler. The investment also included a credit facility underwritten by Arcadia Funds, LLC, the company noted, with the funds providing Marco Financial with momentum to address the $1.5 trillion trade gap, it said.

MineralTree

AP and B2B payments automation FinTech MineralTree announced a $50 million Series D investment round this week in conjunction with two acquisitions. Investors at Great Hill Partners, .406 Ventures and Eight Roads Ventures provided the investment, while MineralTree also revealed its takeover of Inspyrus and Regal Software, two businesses also operating in the AP automation arena. With a focus on mid-market companies, MineralTree said there has been rising demand for AP automation technologies amid pandemic-related volatility and remote working requirements. The company plans to use the latest investment to expand product capability, strike new partnerships and continue to scale as it looks to strengthen capabilities for MineralTree customers and bank partners.

Mirakl

Taking the lead this week is Mirakl, an eCommerce-as-a-Service startup targeting both B2B and B2C sellers looking to embrace the digital realm. In an announcement this week, Mirakl revealed an impressive $300 million investment round, propelling its valuation to $1.5 billion. Investors at Permira led the investment, while 83North, Bain Capital Ventures, Elaia Partners and Felix Capital also participated. Mirakl said it plans to deploy the investment to fuel its “new phase of hypergrowth,” with plans to hire more than 300 engineers over the next three years, as well as scale its customer success and sales teams. “The world is going through a new economic revolution driven by tech innovation and increased online connectivity,” said Mirakl in its announcement. “Traditional business models have stretched to their breaking point trying to compete for speed and scale.”

Looking Ahead: Next Insurance

Small business InsurTech startup Next Insurance is reportedly in talks to secure $250 million in fresh funding led by CapitalG, the private equity firm of Alphabet. Next Insurance would land a $2.25 billion valuation if the funding occurs, reports in Bloomberg said, and would follow a previous $250 million investment from Munich Re Group announced last fall.