Bill.com, a US-based cash flow management software system platform, has secured USD88 million in its latest funding round to push its digital business payments services. The funding round was led by Franklin Templeton, along with participation from Mastercard and Fidelity Investments Canada, among others. According to the company, the small and midsized business segment represents a massive US business payments market that’s ripe for disruption. Since consumer payments have experienced abundant innovation, business payments have lagged behind. Over USD58 trillion in B2B payments are made annually with 80 percent of them paper cheques that come at a high cost including the potential for errors and security issues.
CEO and Founder of Bill.com, René Lacerte stated that businesses struggle with conventional payment processes which are complex, manual, and paper-based and not always secure. Our Cloud payment platform is changing all that. We automate payments and back-office business processes resulting in significant efficiencies and cost savings. Founded in 2006, Bill.com develops Cloud-based accounts payable and accounts receivable solutions for businesses, banks, and accounting firms. Its automated system takes a scan, fax or emails of bills and routes to approvers and offers one-click access to any required backup documents. Bill.com has a network of more than 3 million members paying and getting paid with its platform. According to the company, it manages over USD60 billion in annual payment volume and has partnerships with financial institutions and technology companies in the US that reach millions of businesses, in turn, it results in increased market adoption of digital B2B payments.
In the latest round, apart from investments by Franklin Templeton, Mastercard and certain funds managed by Fidelity Investments Canada, other participants include Kayne Anderson Rudnick, Temasek, Cross Creek, and FLEETCOR. Based in Palo Alto, California, Bill.com, till date, has hoisted more than USD275 million, which has involved investments from American Express, Bank of America and JP Morgan Chase.