After several weeks of B2B FinTech funding activity, the market has cooled a bit with about $220 million in total investment for the sector. Saudi Arabia’s B2B eCommerce sector enjoyed a fundraising boost, while in the U.S., the digitization of SMBs drove VCs to welcome the market’s next unicorn.
Saudi Arabia-baed Retailo operates a grocery B2B eCommerce marketplace that has just attracted $6.7 million in seed funding — the largest-ever for a startup in the nation, according to Mena Bytes reports. Shorooq Partners and Abercross Holdings led the investment, while AgFunder and Arzan Venture Capital, as well as several individual investors, also participated. The company operates a mobile app for grocery store owners to procure items for inventory, with support for next-day delivery. The company plans to use the funding to expand across the region and invest in its technology.
A $7.47 million seed round for France’s Fintecture will help the company connect its payment services and technology to the growing population of businesses operating online. Highlighting the challenges of B2B organizations embracing the eCommerce model in particular, Fintecture noted that merchants are struggling to offer a seamless digital experience thanks to lackluster payment offerings. PSD2 regulations have enabled the company to create a new payment infrastructure using APIs to integrate with banks for accelerated payment processing. The seed funding was led by Target Global, while Samaipata, Société Générale and several others also participated. Fintecture said it will use the investment to expand its team, invest in its infrastructure and accelerate deployment throughout Europe.
Boost Payment Solutions
The FinTech that helps B2B organizations digitize transactions and support commercial card payments has raised $22 million in Series C funding led by Invictus Growth Partners. Boost Payment Solutions said it will use the investment to focus on accelerating growth across a range of industries, including healthcare, telecommunications, manufacturing, freight and logistics, and real estate. “B2B card payments provide many benefits for enterprises, and this is one of the most attractive and fastest-growing segments within FinTech,” said William Nettles, co-founder and managing partner at Invictus Growth Partners.
Another Saudi Arabia-based B2B eCommerce startup landed fresh funding this week. Sary announced a $30.5 million Series B investment round led by VentureSouq, reports in Mena Bytes said, while Rocketship.vc, STV, Raed Ventures, MSA Capital and Derayah VC also participated. Sary’s platform operates across a range of verticals, but primarily focuses on the food and grocery space, with a mobile-first approach to helping stores restock their shelves. The company raised the funds as it looks to integrate third-party financial services within its platform, including lending services, reports said.
The largest investment round for a B2B FinTech this week goes to HoneyBook, which announced a $155 million Series D funding round led by Durable Capital Partners. HoneyBook, which has reached unicorn status as a result of the investment, also saw funding from Tiger Global Management, Battery Ventures, Zeev Ventures, 01 Advisors and several existing investors. HoneyBook operates a billing and business management solution for small and medium-sized firms. The new funding will be used to invest in hiring, reports said.
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