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Small Business Accounts Payable Fuels B2B Startup Funding

With about $367 million in fresh funding, the B2B FinTech landscape continues on its 2021 hot streak. Investments poured in all over the world, with funding targets that include B2B eCommerce, payroll and business financing. Accounts payable (AP) workflows were a particularly bright spot in this week’s roundup. Leading the charge was one tech startup that is digitizing small businesses’ supplier payment workflows.


Artificial intelligence (AI) supply chain technology company Verusen, based in the U.S., has raised $8 million in Series A funding, a press release said. The company saw the investment co-led by Forte Ventures and Flyover Capital, while BMW i Ventures, Glasswing Ventures, Zetta Venture Partners, Kubera VC and Engage also participated. Verusen will use the funding to focus on further growth as it connects businesses to materials management, inventory and procurement solutions for organizations with complex supply chains.


U.S.-based Paymerang offers AP technology designed to automate a range of financial workflows for the middle market. This week, the company revealed it has raised $10 million from Aldrich Capital Partners, with reports in Richmond Times-Dispatch noting that Paymerang plans to use the funding to invest in sales and marketing efforts, as well as to develop new financial solutions for its corporate customers as they accelerate back-office digitization.


Canada’s Tealbook, a B2B technology company that provides supplier data to businesses to promote supply chain and procurement visibility and efficiency, has raised $14.4 million in Series A funding, a recent press release said. RTP Global led the round, while BDC Capital, Grand Ventures, Reciprocal Ventures, Refinery Ventures, S&P Global, Stand Up Ventures and Workday Ventures also participated. Silicon Valley Bank also provided debt financing, the company noted. Tealbook will deploy the investment to fuel further innovation in its platform, and to strengthen sales and marketing efforts.


With operations in both the U.K. and the U.S., open banking payments platform Token said via press release that it has secured a $15 million Series B investment round led by SBI Investment and Sony Innovation Fund by IGV. Existing backers Octopus Ventures, EQT Ventures and BNP Paribas’s Opera Tech Ventures also participated. Token offers businesses technology to adopt more efficient account-to-account payments, with a focus on large merchants, payment service providers and banking-as-a-service portals. The company will use the funding to continue building out its open payment and data capabilities.


Among the many back-office functions disrupted by the pandemic and a work-from-home environment is the hiring process. One startup, Omnipresent, based in the U.K., has recently raised more than $15 million with its human resources technology that allows employers to hire and onboard professionals in a remote setting. Reports in UK Tech News said the company did not disclose who led its Series A investment, though it noted that existing backers Episode 1, Playfair Capital and Truesight Ventures also participated. Omnipresent plans to use the investment to expand market share.


Targeting small retailers and mom-and-pop shops across Indonesia with its B2B eCommerce solution, Ula has raised $20 million to expand across the market. The Series A funding round was led by Quona Capital and B Capital Group, while Sequoia Capital India and Lightspeed also participated, according to TechCrunch reports. As it tackles supply chain fragmentation in the fast-moving consumer goods (FMCG) and produce arenas, Ula also connects SMBs to working capital to manage cash flow and finance their inventory purchases.


Malaysia-based CapBay offers a peer-to-peer and supply chain financing platform for businesses to access short-term financing from a range of banks and other investors. The company has just announced a $20 million Series A investment round, according to e27 reports, which was led by KK Fund. Several angel investors also participated. CapBay plans to use the investment to broaden its investor pool and expand its market presence to reach more small and medium-sized businesses.


Newly launched payroll automation FinTech Check revealed a $35 million funding round this week in Fortune reports, with Thrive Capital and Stripe leading the charge. Check offers businesses software to digitize payroll operations, specializing in technology that allows third-party developers to integrate its payroll tool into their own solutions that target smaller businesses. Reports did not disclose how Check plans to use the new investment.


With nearly $59.5 million in Series B funding, France-based Alma is strengthening its position in the B2B retail arena. The company currently offers a range of both B2C and B2B solutions for the sector, including buy now, pay later (BNPL) capabilities. Idinvest and Cathay Innovation provided the latest investment round, which reports in said will enable Alma to develop new installment payment solutions and develop partnerships with B2B marketplaces as it also explores geographic expansion, customer acquisition and new staff hires.


Targeting startups and small businesses, California-based Pilot offers SMBs technology to digitize their back-office operations with enterprise-grade solutions that include spend management, tax credit availability and CFO services. The company announced this week a $60 million Series C funding round led by Sequoia Capital, which will be used to broaden its product offering, the firm said in a press release.


With $110 million in fresh funding, small business B2B payment technology firm Melio has secured a $1.3 billion valuation and landed in the top spot in this week’s B2B Venture Capital roundup. The company, based in both New York and Israel, secured the investment from Coatue, while existing investors Accel, Aleph, Bessemer Venture Partners, Corner Ventures, General Catalyst and Latitude also participated, the company said in a press release. Melio will deploy the funding to help SMBs digitize their supplier payment operations and strengthen cash flow.

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