San Francisco-based fintech platform Fundbox announced Tuesday that it raised $100 million in fresh financing. The Series D round, led by Healthcare of Ontario Pension Plan, will fund the expansion of the company’s product platform.
The fresh injection of capital drove Fundbox’s valuation to $1.1 billion, cementing its status as a unicorn. The latest raise is also the company’s first since 2019, when it closed on its $175 million Series C. At the time, Fundbox was valued at $700 million.
The company’s new financial milestones likely grabbed investors’ attention once again. Fundbox recently surpassed a $100 million yearly revenue run rate, according to the company. Investors have also probably noticed the company’s rapidly expanding customer base. Over the last year, Fundbox witnessed a 200 percent increase in new customer acquisitions, according to the company.
Fundbox provides credit and payments solutions to small businesses. Not just any small businesses though, Fundbox works with SMBs that serve other SMBs. Take for example, a local farm-to-table restaurant. That restaurant needs to work with a variety of businesses to get food on the table and staff in the kitchens. The businesses in charge of said tasks would be ideal Fundbox clients.
Fundbox’s AI-powered financial tools help SMBs unlock the working capital that typically gets tied up in unpaid invoices. The company’s platform aggregates and analyzes data from business transactions in order to create risk assessments. Fundbox hopes that with these risk assessments, SMB owners can easily decide where they can cut costs, save on money and drive revenue.
“[We’re] primed for continued growth as we approach a once-in-a-decade opportunity to drive the recovery and expansion of the small business economy,” Prashant Fuloria, CEO of Fundbox, said in a statement. “We remain committed to leveraging our AI, data-native approach, and small business insights to solve working capital needs and power the resurgence of the small business economy.”
Fundbox has connected with over 325,000 businesses to date, according to the company.
Moving forward, Fundbox plans to use the additional capital to focus on partnerships and customer acquisition initiatives as well as product development. The 300-person company is also expanding its headcount. It is now hiring for 20 positions spanning its analytics, finance and marketing teams, to name a few.
Fundbox has raised $553.5 million in venture capital financing to date, according to Crunchbase.
Additional investors Allianz X, Khosla Ventures and The Private Shares Fund participated in the round, among others.
