US-based business finance provider Fundbox raised $100m yesterday in a series D round featuring Allianz X, a subsidiary of insurance provider Allianz, and investment banking firm BNY Mellon.
Healthcare of Ontario Pension Plan (HOOPP) led the round, which included Khosla Ventures, The Private Shares Fund and Arbor Waypoint Select Fund, while BNY Mellon’s contribution came from funds managed by Newton Investment Management North America.
Founded in 2013, Fundbox provides small and medium-sized business with loans to pay off their invoices, and is in the process of launching a tool called Flex Pay which is intended to give small businesses wider financing options.
The round valued the company at $1.1bn and came after financial services firm Mitsubishi UFJ added an undisclosed amount in May 2020 to increase its series C round to nearly $200m.
Fundbox had raised $176m in series C equity funding in September 2019 from financial services firm Mitsubishi UFJ’s MUFG Innovation Partners vehicle, Allianz X and Recruit Strategic Partners, a subsidiary of human resources provider Recruit.
HOOPP, 9Yards Capital, Khosla Ventures, Arbor Capital, Hamilton Lane, Cathay Innovation, HarbourVest, General Catalyst, Spark Capital Growth and SEB Private Equity also took part in the round, which was boosted by a $150m credit facility.
Spark Growth Capital had led a $50m round for the company in 2015 backed by Bezos Expeditions, Sound Ventures, Entrée Capital, Khosla Ventures, General Catalyst, Blumberg Capital and Shlomo Kramer, bringing its total funding to $108m.
General Catalyst, Khosla Ventures, Blumberg Capital and Shlomo Kramer were all existing investors. Fundbox’s earlier backers include Nyca Partners, SV Angel, Vikram Pandit, Tom Glocer, Jay Mandelbaum and Emil Michael.
Prashant Fuloria, chief executive of Fundbox, said: “Fundbox is primed for continued growth as we approach a once-in-a-decade opportunity to drive the recovery and expansion of the small business economy.”
