VC continues to pour millions into the payments industry
This week, Stampli received $50 million while Treasury Prime gained $20 million in their latest round of funding. On the other hand, Bill.com acquired the Divvy platform for $2.5 billion. Until last week, VC had poured $3.53 billion into commercial payments companies.
US-based accounts payable automation company Stampli collected $50 million in its Series C round of funding which was led by the Insight Partners with other participants such as SignalFire and Nextworld Capital, UpWest, Hillsven, Bloomberg and Naver Corp. Till now Stampli has collected over $87 million in total funding.
Last year, the company had launched Stampli Direct Pay, which was an extension of its AP automation platform enabling businesses to pay for invoices inside the Stampli platform via ACH or check from their bank accounts.
In the company’s press note, it observed that the platform addresses the invoice processing by centralising the invoice related communications, documentation, and history and providing a collaborative workspace for accounts payable teams and approvers to make invoice and payment decisions.
In the latter part, Treasury Prime which is a US-based API platform company raised $20 million in its Series B round of funding co-led by Deciens Capital and QED Investors with participation from SaaStr Fund, and Susa Ventures.
The company noted that the new funding raised will be used towards its ‘go-to-market programs and to expand the company’s sales, marketing, and engineering teams’.
Treasury Prime earlier was selected by the Pacific Western Bank to provide API services and as its technology partner to modernize its banking infrastructure.
The company notes that it is ‘creating a scalable and profitable ecosystem of fintechs and banks so fintechs can get to market in days, not months’ while also ensuring that fintechs have a ‘direct relationship with their bank partner as well as with their technology provider’.
In other news, Bill.com which is a digital business payments company has acquired Divvy, a corporate card and expense management platform company for $2.5 billion.
Earlier this year when Divvy raised $165 million, it was valued at $1.6 billion.
Under the acquisition deal, Bill.com will pay $625 million in cash and $1.875 in stock. The boards of both companies have approved the deal and the deal is expected to close by the end of Bill.com’s first fiscal quarter ending on 30 September 2021 and the deal is subject to regulatory approval.
As mentioned in the press release, Bill.com has a base of 115,000 customer base and its network of 2.5 million members and on Divvy’s part it has more than 7500 active SMBs.
Goldman Sachs & Co. LLC is serving as financial advisor to Bill.com while Financial Technology Partners (FT Partners) is serving as exclusive strategic and financial advisor to Divvy.