Commercial payment fintechs bag $17.8 million in the latest funding round
In the latest round of funding, investors have poured $17.85 million into Mesh Payments and Billhop. This follows on from Melio and Volopay which secured $110 million and $2.1 million of funding respectively.
In the former, Mesh Payments, a New York-based B2B payment service company has raised a $13 million financing round, led by TLV Partners, with participation from Meron Capital, R-Squared Ventures, industry pioneers Roy Rubin and Roy Erez and investors led by fintech VC Ryan Gilbert.
In late 2019, Mesh Payments and Visa had partnered on virtual commercial card payment services.
The company in its press release says that this funding would be used towards “company’s sales and marketing efforts, as well as accelerate the establishment of strategic partnerships with leading management platforms to seamlessly integrate with companies’ corporate financial workflows”.
According to the company’s website, MeshPay Prepaid Visa Card is issued by Metropolitan Commercial Bank pursuant to a license from Visa U.S.A. Inc.
Billhop, which is a Swedish based payment services company has raised $4.85 million (€4 million) in series A funding round from VC Element Ventures. Billhop is a platform which enables businesses to pay their suppliers invoice by credit card regardless of whether the supplier accepts card payments.
“The pandemic has led to massive reductions in Travel & Entertainment (T&E) spend traditionally comprising the bulk of corporate card spend. It has forced commercial card issuers to find new avenues to stimulate card volumes”, said Ingemar Sjögren, CFO & co-founder of Billhop.
Last year, Billhop had partnered with Visa to launch B2B payments and SME solutions.
The company says that the new funding would be used towards product development, sales and marketing division which has come into light with rising global demand for working capital solutions.