US-based business payment platform developer Fundbox raised $326m in equity and debt financing yesterday from investors including internet company GMO, financial services provider Synchrony and subsidiaries of corporates Recruit, Mitsubishi UFJ and Allianz.
The $176m series C equity portion of the round also featured Healthcare of Ontario Pension Plan, HarbourVest, 9Yards Capital, Hamilton Lane, Cathay Innovation, Arbor Ventures, Khosla Ventures, General Catalyst, Spark Capital Growth and clients of SEB Private Equity.
Insurance group Allianz, human resources provider Recruit and financial services firm Mitsubishi UFJ Financial Group participated through Allianz X, Recruit Strategic Partners and MUFG Innovation Partners respectively. The other $150m was secured in the form of a credit facility.
Fundbox runs a business-to-business (B2B) credit network that allows companies to access financing to cover payment delays. Companies can use the service to offer structured payments to customers, once they have been assessed by Fundbox, and receive the full amount immediately.
Users seek financing through the company’s online platform and get a decision in minutes, with the cash transferred the following working day.
Nazim Cetin, Allianz X’s chief executive, said: “Fundbox has demonstrated a track record of success in a competitive B2B fintech market by building the first payment and credit network.
“Our investment underscores the belief that Fundbox will continue setting itself apart in e-commerce by employing technologies that allow corporate customers to focus on growing their business. We look forward to collaborating with Fundbox and supporting its continued growth in an expanding $21 trillion market.”
The round valued the company at $500m to $1bn, a spokesperson told Forbes. It has now raised more than $283m in equity funding since it was founded in 2013.
Fundbox secured $17.5m in a 2014 series A round led by Khosla Ventures that included SV Angel and private investors Vikram Pandit, Tom Glocer, Jay Mandelbaum and Emil Michael.
General Catalyst led a $40m round for Fundbox in 2015, investing alongside Nyca Investment Partners, Khosla Ventures, Shlomo Kramer and Blumberg Capital, the latter two being identified as existing backers.
The company added $50m later the same year in a round led by Spark Capital Growth that also featured Khosla Ventures, Kramer, Blumberg Capital, General Catalyst, Bezos Expeditions, Sound Ventures and Entrée Capital.
