The future of financial services is digitization. An indication is the rate at which startups in the fintech space are getting funded. Speaking of funding, Fintech startup FloBiz, a neobank for the Indian small and medium businesses (SMB), has raised $31 million in a Series B funding round led by Sequoia Capital India, Think Investments, and its existing investors Elevation Capital and Beenext. Before the latest fundraise, FloBiz had raised $10 million in Series A from Elevation Capital and existing investors in March 2021.
The round also saw participation from Vijay Shekhar Sharma of Paytm, Kunal Shah of CRED, Jiten Gupta of Jupiter, Amrish Rau of Pine Labs. Neeraj Arora of HalloApp, Nitin Gupta of Uni Cards, Ankit Tomar of Bizongo, Sayali Karanjkar of PaySense, and Krishnan Menon of BukuKas, along with 9Unicorns and Whiteboard Capital.
Founded in 2019 by IIT and BITS alumni Rahul Raj, Rakesh Yadav, and Aditya Naik, FloBiz is a neobank for SMBs backed by investors like Sequoia Capital, Elevation Capital, Greenoaks Capital, Beenext, and Think Investments.
FloBiz’s flagship product, myBillBook, was launched in January 2020 to help SMB owners digitize invoicing, streamline business accounting and automate workflows of their enterprises.
It helps maintain inventory, manage receivables and payables, and access critical business reports to enable efficient decision-making. With over a million monthly active users, SMBs now record over $1 Bn worth of transactions on myBillBook every month, said the startup. It aims to launch the app in at least five more regional languages within the next six months.
Rahul Raj, co-founder and CEO of FloBiz said he has a slew of developments in the pipeline for offering further services to its SMB partners in the next 12 months.
“We are really impressed by the user-centricity, product focus, and experimentative approach of the FloBiz founders,” added Tejeshwi Sharma, Managing Director, Sequoia Capital India.
The startup plans to utilize the capital for team expansion, product development, and scaling distribution to serve more businesses. FloBiz will also focus on building additional technical capabilities as it prepares to venture into financial services soon.
India in focus
GDP: $2.623 trillion in 2020 compared to $2.871 trillion in 2019
Population: 1.38 billion in 2020 compared to 1.366 billion in 2019
GDP per capita: $1,900 in 2020 compared to $2,100 in 2019