VCs Back FinTechs That Help Other Firms Manage Money

VCs Back FinTechs That Help Firms Manage Money

With more than $89 million raised, B2B FinTechs this week impressed venture capitalists (VCs) with a range of services, including small business accounting, financing, spend management and payroll. Startups helping other businesses to manage their financing proved popular with investors, but it was a Vietnamese B2B eCommerce startup that took home the largest round. PYMNTS breaks down the latest VC investments below.

Xendo

Small business accounting startup Xendoo announced a $3.5 million fundraise this week, according to CrunchBase. The company connects into small businesses’ bank accounts and credit card transaction data to automate data collection and analytics, providing firms with real-time visibility into their finances. Investors at Malachi led the seed round, while Revolution’s Rise of the Rest Seed Fund, DeepWork Capital, LAUNCH Syndicate and others also participated.

Sleek

Sleek offers a B2B service that enables startups and young businesses to incorporate and operate, targeting firms in Singapore and Hong Kong. According to reports, the company has raised $5 million in seed financing from Pierre Lorinet and Fabio Blom, while MI8 also participated. The company also connects its clients to accounting, tax and regulatory services, with plans to expand its team and develop new features with the funding.

Tribal Credit

With $5.5 million in seed funding, U.S.-based Tribal Credit is targeting small businesses in emerging markets, enabling them to access alternative financing. Though the company has not yet launched operations, reports in it was reported that the company will connect small firms to credit and spend management solutions using artificial intelligence (AI) and blockchain. Investors at BECO Capital and Global Ventures led the round, while Endure Capital, 500 Startups, Valve VC, AR Ventures, Off The Grid Ventures, Rising Tide Fund and Rise Up also participated.

Pepper

Focused on helping startups manage and analyze expenditure, U.S.-based Pepper has announced a $5.6 million seed funding round, per recent reports. The firm landed the funding from Upfront Ventures, Lerer Huppeau and Manta Ray Ventures. Pepper is targeting direct-to-consumer (DTC) startups and digital businesses, allowing them to predict and analyze finances. The funding comes as Pepper readies to launch in beta mode in the first quarter of next year, with plans to introduce premium features later.

Hourly

U.S.-based Hourly announced a $7.15 million funding round in a press release this week, with the seed investment led by Aya Peterburg of Haim Sadger and S Capital. Additional investors included Inovia Capital, J-Angels and 22 angel investors, Hourly said in its announcement. The company, which launched operations earlier this year, offers an integrated payroll, employee time-tracking and workers compensation management solution for small businesses, enabling SMBs to save on workers’ comp by leveraging real-time payroll data and collaborating with insurance providers. Hourly said it will use the capital to fuel market expansion.

Portify

In the U.K., Portify announced a Series A funding round to the tune of $9.3 million, CrowdfundInsider reported. Redalpine, Taxfix and Finiata provided the funding, while existing backers Kindred and Entrepreneur First also participated. Portify offers an app and a range of financial services targeted to the gig economy and its professionals to help self-employed individuals manage their finances. With the fresh funding, Portify plans to expand credit-building and personal loan solutions within its offering.

Modern Treasury

With $10 million in new funding, U.S.-based Modern Treasury will continue to bolster its treasury and corporate finance solutions. The company offers software to manage, track and analyze corporate payments throughout their lifecycle with continuous accounting and real-time data access. The Series A funding was led by Benchmark, the company said in a press release, though they did not elaborate on exact plans for the funds.

Huckleberry

Also operating in the small business workers’ comp market is Huckleberry, which raised $18 million for its small business insurance platform. Investors at Tribe Capital led the Series A round, which also saw participation from Amaranthine, Crosslink Capital and Uncork Capital. Huckleberry, based in the U.S., said it will use the investment to expand into new verticals and offer new insurance products for small businesses, as well as to invest in engineering, data science and marketing.

Telio

Based in Vietnam, Telio operates what it says will be the country’s first B2B eCommerce platform, and investors at Tiger Global are backing the startup by leading a $25 million Series A funding round. Other investors include Sequoia India, GGV Capital and RTP Global, according to Deal Street Asia reports. Telio’s digital platform targets small mom-and-pop shops with brands and wholesalers, offering competitive pricing and logistics services. With the funding, Telio will continue developing its warehouse network to enable next-day delivery, reports said.