Fundbox, an AI-powered financial platform for small businesses, has collected $100m in its Series D funding round, which brings its valuation to $1.1bn.
Healthcare of Ontario Pension Plan (HOOPP) served as the lead investor, with commitments also coming from Allianz X, Khosla Ventures and The Private Shares Fund. Also joining the round were first-time Fundbox investors, Arbor Waypoint Select Fund and a suite of BNY Mellon funds managed by Newton Investment Management North America.
This investment comes after a strong period of growth, including $100m in annual revenue rate and new customer acquisition growth of over 200%. The FinTech company has also achieved $2.5bn in transaction volume.
Fundbox plans to continue the growth momentum with the launch of new products in 2022. One of these features is expected to generate a subscription revenue stream and a product that is designed specifically for entrepreneurs with multiple businesses.
The FinTech company is an AI-powered financial platform that provides SMEs with easy access to financial tools and resources. Its tool suite includes access to a line of credit, term loans, insights for cash balance across accounts and more.
HOOPP VP Shrirang Apte said, “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 behaviour.
“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.”
The FinTech company has named several key hires, including Khary Scott as its VP and head of partnerships, and Renuka Nayani as its VP of finance.
Fundbox previously raised $200m in a Series C extension in 2020. The funding round followed on from an initial $176m it raised in late 2019.
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