B2B accounts payable (AP) Payments-as-a-Service (PaaS) company Finexio has completed an oversubscribed $35 million Series B round as it aims to capture a growing desire for digital payment tools.
The round was led by J.P. Morgan, with assistance from existing investor Patriot Financial Partners and new investors Discover Financial Services, Valley Bank and Trogg Hawley Capital, according to a Monday (Oct. 24) news release.
The Series B comes three months after Finexio raised $30 million to expand its team and accelerate product development.
The company provides end-to-end AP payment capabilities embedded within an accounts payable and procure-to-pay (AP2P) software platform, the release stated. Corporate clients get predictive payment and cash flow analytics capabilities, supplier identity and fraud prevention technology, and exception processing automation.
PYMNTS spoke with Finexio CEO and founder Ernest Rolfson earlier this year, soon after the company completed yet another funding round, this time for $10 million.
Read more: Companies Look Beyond Hype, Show Preference for AP Solutions That Work
He said that while many companies are using software, digital tools and automation to handle payments, not every business has made the switch.
“Accounts payable is a laggard area in this space,” he said. “Companies are still tackling this largely with paper checks, largely by hand, largely with people.”
He added that “the big story for the payment space in general is, how can we have more user-friendly, embedded financial tools to help businesses and people do a lot more efficiently at scale. That’s why all this paper is going away — or will go away.”
PYMNTS research found that nearly a third of small-to-medium-sized businesses (SMBs), would be interested in an all-in-one payment platform to receive payments.
Companies that make $20 million and $50 million in yearly revenue show a much stronger interest than smaller companies, as only 22% of those with less than $1 million in annual revenues are interested.
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