B2B Marketplaces Attract New VC Funds

2021 continues to be a busy year for B2B FinTechs and their investors, with this week securing nearly $300 million in combined funding for the sector. Newly-funded B2B startups include marketplaces offering a range of services, from funding to talent, as well as technology firms looking to streamline the B2B payment workflow. But it was an India-based digital B2B marketplace in the manufacturing arena that scored the largest round of the week.

Taskmo

India-based Taskmo offers a B2B digital marketplace for businesses to search and book outsourced professionals. Whether in need of gig workers of professionals that can complete a single task, the portal offers on-demand access to task-based talent. The company recently announced a $1.4 million investment round provided by Quess Corp, which, as the nation’s largest private-sector employer, will also help Taskmo expand lead generation. In addition to access to talent, the platform also facilitates instant payments between a business and the professional or gig worker. The new funding will help the company expand its infrastructure and grow its user base, the firm said.

Sirenum

Based in the U.K., Sirenum offers a platform for businesses to manage their shift workers. The company has just raised $2.7 million in funding from former Tesco CEO Sir Terry Leahy, as well as the William Currie Group, according to UK Tech reports. Sirenum said it plans to deploy the investment to expand across borders and invest in product development, with the company highlighting new opportunities in the market, for instance the emergence of vaccination centers, for businesses to adopt the solution.

DynaRisk

Cybersecurity risk mitigation solution provider DynaRisk, which targets both small businesses and consumers, has secured $3 million in seed funding led by Nexus Investments, the company said. Existing backers Insurance Capital Partners and Jonathan Marland also participated. DynaRisk collaborates with InsurTech businesses to deliver risk management solutions for insurance companies that provide cyber insurance. With risks like ransomware attacks on the rise, DynaRisk is planning to expand its footprint thanks to the investment, with an eye on launching in the North American market.

Banxware

Operating in the increasingly popular embedded financing market, Banxware, which targets the small business lending arena, has secured $4.79 million in seed funding. TechCrunch reported that Force Over Mass and VR Ventures led the round, while HTGF and various private investors also participated. Having launched in December, Banxware works with marketplaces, payment service providers and other platforms to imbed SMB lending capabilities within their own solutions. The funding will go towards the further development of its white label offering, expanding its team, and introducing new solutions based on card products.

Balance

Balance, a B2B FinTech that allows businesses to integrate a range of B2B payment functionality, including offering a variety of payment methods as well as custom terms, has revealed a $5.5 million investment from Lightspeed’s Tal Morgenstern, Stripe and Max Levchin’s SciFi VC. Reports in TechCrunch said the company aims to simplify B2B transactions in cases where vendors have to offer terms or trade on credit.

Monkey

Brazil-based Monkey operates a digital financial marketplace for businesses to access receivables financing. The company revealed $6 million in Series A funding raised by Quona Capital and Kinea Ventures. Targeting small and medium-sized enterprises, Monkey’s supply chain financing offering pairs small businesses with large corporates that can purchase their receivables in a competitive ecosystem. The company said it will use the investment to expand its team and broaden operations throughout Latin America, TechCrunch reports said.

Lockstep

Accounting technology startup Lockstep has announced a $10 million Series A funding round led by Point72 Ventures, while Clocktower Ventures and Revel Partners also participated. The company offers invoice processing with integration into ERP and accounting platforms, targeting accounting departments with technology to enhance accounts receivable and accounts payable workflows The company said it will use the investment to invest in product development.

WorkStep

California’s WorkStep offers a platform for organizations to source talent for their supply chain operations. This week the company announced FirstMark Capital led a $17 million funding round, while existing backers at Prologis Ventures also participated. The cash is a combination of seed and Series A funding, and WorkStep said it will use the investment to expand its own team and to strengthen its underlying technology.

Holded

Small business ERP (enterprise resource planning) FinTech Holded has secured nearly $18 million in Series B funding, TechCrunch reports said. The firm offers a range of B2B solutions, including an ERP, invoicing, inventory and accounting technology. Based in Spain with recently-expanded operations in France, Holded landed the investment from Elaia, while Lakestar, Naura Capital and SeedRocket also participated. The company didn’t reveal what it plans to do with the funding.

Narmi

Financial technology firm Narmi, which provides digital banking technology for financial institutions, has announced a $20.4 million Series A investment round led by New Enterprise Associates. A press release said Patriot Financial Partners, Picus Capital, Contour Ventures and Firebold Ventures also participated, as did various executives at other FinTechs. With a focus on API integration, Narmi connects banks to cloud-based platforms for an array of workflows, including digital account-opening, business and consumer banking, and administration. The firm said it will deploy the investment to expand its current offering to banks and credit unions.

Built Technologies

Targeting the construction industry, Tennessee’s Built Technologies offers a financing and payment solution that has just attracted $88 million in Series C funding. Investors at Addition, while Canapi Ventures, Index Ventures, Goldman Sachs Investment Partners, Nyca Partners, Fifth Wall Ventures and Nine Four Ventures also participated. Built said it will use the funding to further its investment in how it provides financial technologies and solutions for construction companies including developers and homebuilders, with plans to expand its Built For Lending product suite.

Zetwerk

India-based Zetwerk landed the largest investment round this week with a $120 million raise for its B2B digital marketplace. The company targets the manufacturing industry, said TechCrunch, connecting original equipment manufacturers and engineering procurement construction companies with SMBs and enterprises in the manufacturing space, enabling buyers and sellers to connect and trade custom equipment. The Series D investment was led by existing backers Greenoaks Capital and Lightspeed Venture Partners, while existing investors Sequoia Capital and Kae Capital also participated.