OatFi, a New York-based company that provides working capital infrastructure for B2B payment platforms, has raised $8m in a seed funding round.
The round was led by QED Investors with participation from existing investors Portage Ventures, Picus Capital and Cambrian Ventures, and the addition of new investors Fin VC, Dash Fund and Lorimer Ventures.
Ziv Paz, Cofounder of Melio, also participated in the round.
This brings the total funding to $11.25m, following a $3.25m pre-seed round co-led by Portage Ventures and Picus Capital earlier this year.
The company also secures a $50m credit facility from Architect Capital.
Founded in 2021, OatFi provide end-to-end infrastructure for B2B payment platforms to embed and monetise working capital tools. The company said it iscommitted to levelling the playing field for SMBs while enabling SaaS platforms to better distribute credit solutions without taking on credit risk.
Mike Barbosa, OatFi CEO, said, “Most existing B2B solutions have copy-pasted the BNPL playbook for consumers, but the problems for businesses are much different. An SMB’s working capital issue could exist on both sides of their cashflow conversion cycle, depending on their relationship with suppliers and customers.
“As platforms bring B2B payments online, we want to solve the problem at the source. Via our flexible infrastructure, B2B payment platforms can embed the desired user experience within their existing product. While a simple widget can work on a consumer checkout page, the product flow for B2B payments is often unique. OatFi provides an API-first infrastructure that empowers our partners to launch their own tools, while we handle the [complex] stuff.”
Recently, Nigerian B2B payments platform Duplo raised $4.3m in its seed round, which was supplied by a coalition of investors and angels.
The Nigerian B2B payments platform offers an end-to-end solution that automates the back-office processes of generating and processing invoices, receiving and approving bills, collecting and disbursing funds and completing account reconciliation.
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