Bill.com raises $88m for business payments push
Bill.com has raised $88 million in its latest funding round led by Franklin Templeton with participation from Mastercard and Fidelity Investments Canada, among others.
“The small and midsized business segment represents a massive US business payments market that’s ripe for disruption,” the firm says.
While consumer payments have experienced abundant innovation, business payments have lagged behind. More than $58 trillion in B2B payments are made annually with 80% of them paper cheques, which come at a high cost including potential for errors and security issues.
“Businesses struggle with conventional payment processes which are complex, manual, paper-based and not always secure,” says René Lacerte, CEO and Founder of Bill.com. “Our cloud payment platform is changing all that. We automate payments and back office business processes resulting in significant efficiencies and cost savings.”
“This is the Golden Age of SMB software and B2B payments with a huge market that’s ready for adoption,” said Anthony Hardy, Franklin Templeton.
Bill.com has a network of more than three million members paying and getting paid with Bill.com.
The company says it manages more than $60 billion in annual payment volume and has partnerships with US financial institutions and technology companies that reach “millions of businesses”, resulting in increased market adoption of digital B2B payments.
In addition to investments by Franklin Templeton, Mastercard and certain funds managed by Fidelity Investments Canada, other participants in the current round include Kayne Anderson Rudnick, Temasek, Cross Creek and FLEETCOR.
Bill.com has raised more than $275 million to date, which has included investments from American Express, Bank of America and JP Morgan Chase.