Fundbox raises $100 million
Fundbox, the financial platform for small businesses, has closed a $100 million Series D funding round at a valuation of $1.1 billion. This latest round was led by Healthcare of Ontario Pension Plan and joined by existing investors Allianz X, Khosla Ventures, and The Private Shares Fund, and brought in new investors including Arbor Waypoint Select Fund and a suite of BNY Mellon funds managed by Newton Investment Management North America. The financing was driven by the company’s “record-setting performance metrics,” including crossing a $100 million annual revenue run rate and new customer acquisition growth of over 200% this year, and Fundbox’s platform expansion into payments.
The California-based company offers a line of credit and term loans to small businesses. It has surpassed $2.5 billion in transaction volume and connected with over 325,000 businesses since its founding in 2013. As a next step towards building a comprehensive suite of financial tools, Fundbox is expanding its product platform and moving into payments with the launch of Flex Pay, which is designed to provide small business owners with additional payment options and flexibility for business expenses.
“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. 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.” – Shrirang Apte, VP, HOOPP.
“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. The addition of Flex Pay to our product offerings is critical as small business owners look to utilize 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.” – Fundbox CEO Prashant Fuloria.
