In general, small businesses need proper financial tools to help them grow so they can make strategic investments at the right time. And Fundbox, a San Francisco-based company, is helping them through their AI-powered financial platform.
Recently, Fundbox announced that it has closed a $100M funding in Series D round at a valuation of $1.1B led by Healthcare of Ontario Pension Plan (HOOPP).
“Over the past two years, we’ve seen how critical small businesses are to powering the economy. At the same time, we’ve seen a rise in innovative financing approaches that have greatly impacted consumer behavior,” says Shrirang Apte, VP, HOOPP.
“Fundbox’s strong performance this year speaks to the market opportunity in disrupting the highly underserved world of small business financing, which has traditionally lagged behind consumer financing innovations. As a result, Fundbox is well-positioned to unlock growth for small businesses and help support the country’s economic recovery,” he adds.
Others, including Allianz X, Khosla Ventures, The Private Shares Fund, and new investors including Arbor Waypoint Select Fund and a suite of BNY Mellon funds managed by Newton Investment Management North America, participated.
Expanding executive bench
Besides funding, the company also expanded its executive bench with new hires in partnerships, growth, sales and operations, and finance. It includes
- Khary Scott – VP and Head of Partnerships,
- Renuka Nayani – VP of Finance, to lead the Strategic Finance, Financial Planning & Analysis (FP&A)
- Rina Jariwala – VP of Sales and Operations and GM of Dallas
- Shawn Haigh – VP of Growth Marketing
AI-powered financial platform
Founded by Eyal Shinar, Tomer Michaeli, and Yuval Ariav, Fundbox is an AI-powered financial platform that provides small businesses with fast and easy access to financial tools and resources.
The company is on a mission to solve working capital needs through credit and payments solutions.
“Fundbox is primed for continued growth as we approach a once-in-a-decade opportunity to drive the recovery and expansion of the small business economy,” says Fundbox CEO Prashant Fuloria.
“The addition of Flex Pay to our product offerings is critical as small business owners looking to utilise buy now, pay later solutions for business. We remain committed to leveraging our superior AI, data-native approach, and small business insights to solve working capital needs and power the resurgence of the small business economy.”
Recently, the company has forayed into payments with the launch of Flex Pay.
Flex Pay is designed to provide small businesses with additional payment options and flexibility for business expenses. Further, Fundbox Line of Credit customers now gets three extra days to pay those expenses.
Repayment options include a bank account, credit card, or Line of Credit draw, providing small business owners with another tool to buy now, pay later.
The company plans to add more financial products in the upcoming years, including one that is expected to generate a subscription revenue stream, a product that’s designed specifically for entrepreneurs, and more.
Numbers to crunch
To date, Fundbox has connected with over 325,000 businesses, unlocking more than $2.5B in working capital, and invested $100M into AI technology, gaining deep insights into the small business ecosystem.
Fundbox has crossed a $100M annual revenue run rate and new customer acquisition growth of over 200% thus far this year.