Small, Early-Stage Funding Rounds Dominate B2B FinTech

We’re covering two weeks’ worth of B2B venture capital funding, and across the board, India has come out on top. The nation saw four startups take home investment out of a total of seven investment rounds. But the largest venture capital funding round went to an accounts payable automation firm in the U.S. with an $18 million investment.

It’s certainly not the largest funding round the B2B FinTech industry has seen. Indeed, the last two weeks were dominated by small, early-stage investments staggered across a variety of industries, from T&E to alternative lending to B2B eCommerce.

Cash Flow Management

Numberz.in

This Indian startup offers small and medium-sized businesses cash flow management solutions through an array of services, like invoice management, expense tracking and other features, reports said last week. The company announced a $650,000 funding round led by Kae Capital and Khosla Impact. According to its cofounder, Aditya Tulsian, incoming tax regulation changes, along with India’s recent demonetization, mean SMEs are going digital and will need to keep better track of funds.

B2B eCommerce

Udaan

Lightspeed Venture Partners India and Lightspeed U.S. led a $10 million funding round for B2B digital marketplace Udaan, reports said last week. The Series A round follows a $1.5 million seed round for the company, according to reports.

Wholesalebox

Another Indian B2B eCommerce startup announced its own funding. Last weekend, Wholesalebox said it secured $2 million in pre-Series A funding from several backers, including Manish Maheshwari, CEO of Network 18 Digital. Contrarian Vriddhi Fund and other investors also participated, reports said. Wholesalebox said it will use the funds to expand operations into new markets and scale its technology infrastructure. Reports said Wholesalebox will also be looking to introduce new features to support stronger buyer-supplier relationships through its platform.

Travel Expense Management

Baoku Online

Corporate travel and expense management startup Baoku Online, based in China, secured Series A funding, the firm said Monday (Nov. 28). While the company didn’t disclose how much it raised, reports said Matrix Partners China provided the investment. Reports also noted that Baoku Online has recently secured partnerships with several top airlines and travel management companies in the nation, including Air China and Shenzhen Airlines.

B2B Payments

AvidXchange

Last year, accounts payable automation company AvidXchange raised a whopping $225 million. This week, the company has topped up that investment with a cool $18 million, announced Tuesday (Nov. 29). Fifth Third Capital led the funding, reports said, which also saw participation from Pivot Investment Partners. AvidXchange said it will use the money for product and technology development, as well as to develop new sales channels and expand its staff. In a statement, AvidXchange CEO Michael Praeger called Fifth Third Capital and Pivot Investment Partners “trusted advisors.”

Honorable Mentions

Alternative Lending

Finance Ireland

As its name suggests, Finance Ireland targets Irish SMEs with its lending services. The company said Thursday (Dec. 1) that it secured $32.2 million in investment provided by Ireland Strategic Investment Fund (ISIF), a deal that also sees ISIF taking a 32 percent share in the alternative lender. The new investment will help Finance Ireland augment its existing SME and agri-leasing operations, according to reports, while Finance Ireland has already expanded operations with staff additions.

Legal Services

LegalRaasta

With a focus on SMEs, LegalRaasta lands on our list today thanks to a $1 million investment round. The Indian startup, which announced the funding Thursday, offers entrepreneurs and SMEs help with compliance with government rules regarding things like food licenses, import/export code, tax regulations and trademark filings. Reports said the company will use the latest funding to expand its staff and to establish full-service offices in main cities in India. It will also explore additional services like licensing and legal document support.