Payment operations software company Modern Treasury raised $38 million through an Altimeter Capital-led Series B funding round, according to a Tuesday (Jan. 12) announcement.
The company says the infusion came during “explosive growth” for its payment operations and treasury management offerings that let firms immediately close their books with continuous accounting, handle payments and banking via one platform, and have full cash visibility.
“Modern Treasury empowers [chief financial officers] CFOs, finance teams, and developers to make effective, automated, real-time decisions to manage the lifeblood of every business — money movement,” Altimeter Capital Partner Ram Woo said in the announcement.
The company says that over $18.5 trillion of business-to-business (B2B) payments are transacted in the United States each year through automated clearing house (ACH) payments, checks and wires, with nearly 50 percent of those still occurring through check.
It takes between one and three days for payments to clear, while finance workforces dedicate a long time monitoring their progress through initiation to approvals and accounting to reporting. However, Modern Treasury says it digitizes every phase of the workflow while its software supplants legacy infrastructure.
Last year, Modern Treasury clients reconciled $1 billion through the company’s infrastructure, while reconciliation volume on the platform expanded by an average of 23 percent each month during the year.
“This funding will enable us to help more companies, both large and small, modernize their finance function, and reconcile the next billion dollars in payments,” Modern Treasury CEO and Co-founder Dimitri Dadiomov said in the announcement.
In terms of payment innovation, the company notes that real-time payments (RTP) account for over 6 percent of its volume.
The news comes after it was reported in December that Modern Treasury would keep strengthening its treasury and business finance offerings with $10 million in new funding.
California-based Modern Treasury, which was founded in 2018 by Dadiomov, Sam Aarons and Matt Marcus, has notched $48 million in funding to date, according to the January announcement.