Payments as a service company Finexio has netted $23m in a round led with a strategic investment from Medalist Partners, an alternative credit manager based in New York.
Finexio will use the money to optimise, and monetise the last mile of the corporate accounts payable process through its cloud based AP payments platform. The investment builds on the $2.5m it raised in December 2019.
Since then, Finexio has secured a customer base encompassing 400 customers representing $4bnn in annual AP spend, primarily in the manufacturing, hospitality, higher education, and business services verticals
Other investors participating in this latest raise include Florida Funders, Post Road Partners, including investors Peter Wirth, Keith Meyers, Paul Friday and Lou DeRose, Alpine Meridian Ventures, Stormbreaker Ventures, Transactis CEO Joe Proto, Finexio senior management, and several leading FinTech and payments industry CEOs.
“This funding round represents a critical milestone for Finexio, enabling us to leverage our innovative payments platform to reach more customers just as CFOs are seeking cost reductions and greater automation in the face of margin compression and cash flow challenges due in part to Covid,” said Ernest Rolfson, CEO of Finexio.
“Our business is at an inflection point with more businesses looking to us to optimize their AP spend and processes. There couldn’t be a better time for Finexio to capitalize on its ability to drive efficiencies and generate new cash flow and revenue for its clients.”
Finexio and Medalist are launching an integrated Supply Chain Finance solution to complement its existing payment’s product. They claimed that the offering will be the first program designed exclusively to meet the needs of middle-market companies improving cash flow and providing essential liquidity for SMEs in the face of a recession.
“Creating win-win solutions for buyers and suppliers while strengthening supply chains in a critical time is smart for the country and business,” said Rolfson. “With our SCF solution, Finexio now has the ability to offer suppliers payments when, where and how they want them, something not currently available to middle-market companies and their suppliers today.
Greg Richter, CEO at Medalist, added, “Our investment in Finexio represents our belief in the future of payments as a service. Finexio is ideally positioned to take advantage of the transition away from paper checks and manual processes towards payables platforms offering increased cash flow, lower costs, and automation.”
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