Finexio Raises $14 Million in Initial Close of Series B, Company Valued at $100 Million
Finexio, the fast-growing B2B accounts payables (AP) Payments-as-a-Service company, today announces the first close of its $30 million funding round at a $100 million pre-money valuation co-led by Mendon Venture Partners and National Bank Holdings Corporation (NYSE: NBHC). Discover Financial Services (NYSE: DFS), Post Road Partners, The Banc Funds, EOM Investments, and other new and existing investors also participated in this growth round.
This Series B funding will enable the embedded B2B payments infrastructure company to accelerate the accounts payable and procurement software industry adoption of its “B2B Payments-as-a-Service platform”, grow its team, and accelerate product development.
Finexio embeds B2B “Payments-as-a-Service” capabilities directly into the world’s largest AP and Procure to Pay Software (AP2P) suites. More than just payments, the Finexio infrastructure and APIs provide predictive payment and cashflow analytics capabilities, supplier identity and fraud prevention technology, and exception processing automation. These proprietary features allow corporate end-users of the software to seamlessly identify, deliver, and support 100% of their business payments digitally, allowing them to make an easy and immediate transition away from manual payment processes and costly paper checks.
The company’s software as a service infrastructure is in use by three of the top 15 largest AP2P providers globally that serve nearly 3,000 customers with $160 billion of B2B spend in the United States. In 2021, Finexio grew revenue 236% and Gross Dollar Volume (GDV) by 211% due to successful integrated channel partnerships and corporate spend transacting on the Finexio platform in the Construction, Manufacturing, Hospitality, and Higher Education verticals.
Ernest Rolfson, Founder and CEO, said, “CFOs at medium and large-sized corporations are looking to do more with less, eliminate manual processes to save time, and increase visibility and control of their cashflow. These executives rely on critical infrastructure AP2P software to run their business and make critical decisions. Embedding Finexio’s B2B payments capabilities directly into the software and workflows already familiar to the CFO and their teams makes digital payment adoption the simplest it has ever been, which creates a fantastic buyer and payee experience.”
Added Rolfson, “This Series B growth investment comes behind Finexio’s already strong momentum in the market as the B2B embedded payments partner of choice for AP2P software and will support additional investments in API and infrastructure technologies to support large complex AP2P software and financial institution partners. Quality institutional investors Mendon Venture Partners and National Bank Holdings Corporation were excited to provide an important boost to support the significant demand we are experiencing for payment solutions that cut costs and increase cashflow at a time when companies need it the most.”
“Finexio is an exciting fintech that delivers real solutions to businesses seeking to digitize, optimize, and overall improve upon a critical aspect of every business operations, payments, on a daily basis. We continue to be impressed with Finexio’s solutions, team, and results across multiple segments and increasingly partnering with financial institutions to provide embedded finance solutions”, commented Andrew Marquardt, Founder and Managing Partner of Mendon Venture Partners.
“We are pleased to invest as well as partner with Finexio to bring a powerful payments solution to our business clients in the vast middle market,” said Tim Laney, Chairman, President and CEO of National Bank Holdings Corporation. “The ease of use together with the opportunity to reduce cost and drive efficiencies are truly impactful to business owners and operators. As NBHC continues to collaborate with cutting-edge companies to deliver innovative solutions to our business clients, we believe that Finexio’s next-gen payments platform will help to drive significant growth in the rapidly evolving payments industry.”
Joe Proto, Finexio’s Chairman and serial fintech entrepreneur, added, “On behalf of all of us at Finexio, we are so honored to welcome Tim Laney from NBH and Andrew Marquardt from Mendon Venture Partners to our board of directors. We are very grateful to all our clients, employees and shareholders for their commitment to our success and proud of our new world-class investors joining us in this round.”
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