B2B payment companies raise $63 million in the latest round of funding

This week, two B2B payment companies, Tribal and Flexio have raised $60 million and $3 million in their respective funding rounds.

In the former, Tribal which is a California based B2B payments company has announced that it has raised $60 million in a Series B round of funding led by SoftBank Latin America Fund.

Coinbase Ventures also joined the funding with the participation from BECO Capital, QED Investors, and Rising Tide.

The company in its press release noted that this funding would be used towards the expansion of its base in Latin America and building its team in Brazil, Mexico, Colombia, Peru, and Chile.

The company has raised a total of $140 million. Managing Partner of SoftBank Latin America Fund, Shu Nyatta noted that the company is using crypto towards payments and lending amongst businesses.

Tribal provides payment services and financing platforms to SMBs in emerging markets with payment methods like multi-currency physical and ​virtual business credit cards​, local and international wires and ​spend management platform​s under a single interface.

In other news, Mexico based B2B payment firm, Flexio raised $3 million in its seed funding round. The round was led by Costanoa Ventures with participation from Soma Capital, Latitud Fund, Omri Mor, Daniel Kahn, Diego Oppenheimer, and Y Combinator.

The company in its press note cited that the World Bank has valued B2B electronic payments totalled $180B in transactions in 2020 in Mexico alone. The payments section amongst SMBs is a manual and error-prone process and is often in unorganized ways. This leads to challenges in cash flow management and no data is available in a centralized way to the businesses when needed.

“The traditional processes are inefficient and arduous, preventing timely payments and using up valuable employee resources while also negatively impacting cash flow management.” said Nathan Schorr, co-founder and CEO of Flexio.

The company will be using the seed funding towards product development and help businesses to automate bill payments and invoicing. The company works in the automation of accounts receivable (AR) and accounts payable (AP) for SMBs.

In 2022, with this funding, companies have raised $313 million and in early 2022, Mesh Payments and Tradeshift raised $50 million and $200 million respectively.

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