Yaydoo secures $20M, aims to simplify B2B collections, payments

It’s no secret that the technology for easy business-to-business payments has not yet caught up to its peer-to-peer counterparts, but Yaydoo thinks it has the answer.

The Mexico City-based B2B software and payments company provides three products, VendorPlace, P-Card and PorCobrar, for managing cash flow, optimizing access to smart liquidity, and connecting small, midsize and large businesses to an ecosystem of digital tools.

Sergio Almaguer, Guillermo Treviño and Roberto Flores founded Yaydoo — the name combines “yay” and “do” to show the happiness of doing something — in 2017. Today, the company announced the close of a $20.4 million Series A round co-led by Base10 Partners and monashees.

Joining them in the round were SoftBank’s Latin America Fund and Leap Global Partners. In total, Yaydoo has raised $21.5 million, Almaguer told TechCrunch.

Prior to starting the company, Almaguer was working at another company in Mexico doing point-of-sale. His large enterprise customers wanted automation for their payments, but he noticed that the same tools were too expensive for small businesses.

The co-founders started Yaydoo to provide procurement, accounts payable and accounts receivables, but in a simpler format so that the collection and payment of B2B transactions was affordable for small businesses.

Image Credits: Yaydoo

The idea is taking off, and vendors are adding their own customers so that they are all part of the network to better link invoices to purchase orders and then connect to accounts payable, Almaguer said. Yaydoo estimates that the automation workflows reduced 80% of time wasted paying vendors, on average.

Yaydoo is joining a sector of fintech that is heating up — the global B2B payments market is valued at $120 trillion annually. Last week, B2B payments platform Nium announced a $200 million in Series D funding on a $1 billion valuation. Others attracting funding recently include Paystand, which raised $50 million in Series C funding to make B2B payments cashless, while Dwolla raised $21 million for its API that allows companies to build and facilitate fast payments.

The new funding will enable the company to attract new hires in Mexico and when the company expands into other Latin American countries. Yaydoo is also looking at future opportunities for its working capital business, like understanding how many invoices customers are setting, the access to actual payments, and how money flows out and in so that it can provide insights on working capital funding gaps. The company will also invest in product development.

The company has grown to over 800 customers, up from 200 in the first quarter of 2020. Its headcount also grew to 100 from 30 during the same time. In the last 12 months, over 70,000 companies have transacted on the Yaydoo network, and total payment volume grew to hundreds of millions of dollars.

Yaydoo is a SaaS subscription model, but the new funding will also enable the company to create a pool of potential customers with a “freemium” offering with the goal of converting those customers into the subscription model as they grow, Almaguer said.

Rexhi Dollaku, partner at Base10 Partners, said the firm saw the way B2B payments were becoming modernized and “was impressed” by the Yaydoo team and how it built a complicated infrastructure, but made it easy to use.

He believes Latin America is 10 years behind in terms of B2B payments but will catch up sooner than later because of the digital transformation going on in the region.

“We are starting to see early signs of the network being built out of the payments product, and that is a good indication,” Dollaku said. “With the funding, Yaydoo will be also able to provide more financial services options for businesses to address a working fund gap.”

#accounts-payable, #api, #base10-partners, #enterprise, #financial-services, #funding, #latin-america, #leap-global-partners, #mexico-city, #monashees, #payments, #recent-funding, #sergio-almaguer, #softbank-latin-america-fund, #startups, #tc, #yaydoo

LatAm-focused corporate spend startup Clara raises $30M months after its last round

This morning Clara announced that it closed a new, $30 million funding round and secured a $50 million revolving debt facility.

The startup, which provides corporate cards to Mexican companies, raised funds earlier this year when it was busy launching its product. Since then, growth has proven rapid for the Mexico City-based company.

TechCrunch learned that the company is valued around $130 million after this latest investment, according to sources familiar with its latest fundraising. The round added DST and monashees to Clara’s cap table; prior investor General Catalyst also contributed funds to the deal.

We spoke with Gerry Giacomán Colyer, a co-founder at the startup and its CEO, about why Clara raised more capital so quickly after it last closed a financing round. The short gist is that the company’s growth, and market, allowed it to raise easily. And that the startup has pretty big plans, so having more capital with which to hire is welcome.

Per Giacomán Colyer, since he last spoke to this publication the transaction volume (GTV) that Clara supports has grown by 100x. His company is managing 2x week-over-week growth at times, which is super rapid. That’s precisely the sort of usage growth that venture capitalists covet; and as Clara makes revenue from interchange fees that stem from transaction volume, the startup is likely seeing its revenue advance at roughly the same rate as its GTV.

That Clara was able to raise more capital is unsurprising. Not only is it growing quickly in its home market with designs on Brazil in the future, a U.S.-based player in the same space recently sold for north of $2 billion. Divvy’s sale was likely a shot in the arm for not only Clara, but also Brex and Ramp, two other well-known players in the larger corporate spend world.

Clara’s success in Mexico makes it likely that related startups also targeting markets that lack a modern corporate spend solution will see strong venture capital interest; I would not be surprised if we heard from a number of other companies attacking geographies with favorable interchange economics with a similar model, as it has proven to be so lucrative.

TechCrunch asked Giacomán Colyer about who his company is targeting in terms of customers; Brex famously got its start working with high-growth startups before moving to work with a broader array of companies. Clara is working with startups in the Mexican market, the company said, but also with larger firms as well. Its CEO said that its underwriting model is set up to support more traditional cash-flow modeling.

So far Clara has largely attracted customers via word-of-mouth, and is working to bolster its referral system. But now that it has lots more capital, it will be interesting to see if the startup builds out a more aggressive go-to-market motion.

And more than just equity capital, the debt that Clara also secured as part of its recent funding round will help it underwrite customers without having to work off of its own balance sheet. Giacomán Colyer said that even after the capital costs associated with the facility, Clara’s economics are still good. Interchange is a flexible beast, it seems.

To that end, TechCrunch asked Giacomán Colyer if his company intends to charge for software in time, or merely eat off of interchange. In the United States, Brex is now in camp one, along with Airbase, while Ramp is sticking to camp two. Divvy proved that you can get to nine-figures in top line without charging for software, though having some ARR in the mix along with interchange incomes could provide a margin-boost to interchange top line. Regardless, Clara appears happy to keep to interchange for the time being.

Let’s see how quickly Clara can keep scaling. We’ll check back with the company in a few months.

#airbase, #brex, #clara, #dst-global, #fundings-exits, #general-catalyst, #monashees, #ramp, #recent-funding, #startups, #tc

Pomelo raises $9M to build a payments infrastructure for LatAm fintechs

Pomelo, a startup building a fintech-as-a-service platform for Latin America, has raised $9 million in a seed round of funding.

The Buenos Aires-based startup’s new infrastructure aims to allow fintechs and embedded finance players to launch virtual accounts and issue prepaid and credit cards via “compliant” onboarding processes.

The COVID-19 pandemic has accelerated the adoption of digital payments all over the world, and Latin America is no exception. While the majority of transactions are still done in cash, there are still over a billion cards in the region.

Cards have an estimated payments volume of $900 billion per year, and yet 95% of these transactions are being processed by local incumbents, asserts Pomelo. This is a problem the company’s founders experienced firsthand in previous roles, and are eager to solve by creating a new payments infrastructure.

“We know from previous experiences…that building a fintech, and particularly issuing cards, in Latin America is a real nightmare,” said Pomelo co-founder and CEO Gaston Irigoyen. “It takes anywhere from 12 to 18 months to launch a simple prepaid card, and unfortunately companies have to go through the painful experience of repeating the process in every market where they operate.”

Pomelo’s goal is to solve the problem by creating a new generation of financial services infrastructure that allows companies to build a fintech business and launch cards “much faster” throughout Latin America. For now, the three-month-old company is in its infancy — the pre-product phase, which makes it even more notable that the company managed to raise such a large seed round.

This round caught our eye for a few other reasons. For one, the three co-founders of the Buenos Aires-based startup were former executives at Mastercard, Google LatAm, Mercado Pago and Naranja X. CEO Irigoyen was an early employee at Google LatAm. He is also a third-time founder with two exits (one to TripAdvisor) and former CEO of Naranja X, Argentina’s largest neobank, with millions of customers. Juan Fantoni was the former director of fintech at Mastercard, where he signed issuing deals with a number of large companies. And Hernan Corral was the CPO of Naranja X and previously head of digital accounts & cards at Mercado Pago.

Next, the caliber of Pomelo’s investors. U.S.-based Index Ventures and Brazil’s monashees co-led the funding round, which also included participation from QED’s Fontes, Max Levchin’s SciFi, Latitud, Biz Stone’s Future Positive, 20VC, Addition, FJ Labs and a16z’s Angela Strange, as well as the founders of Marqeta, Rappi, Auth0, Kavak, Loft and RecargaPay.

If you’re looking for comparisons to U.S.-based fintechs, Irigoyen said it’s got a little bit of Galileo, Marqeta and Stripe in what it’s building out.

Caio Bolognesi, partner at monashees, said his firm has been very bullish on the financial infrastructure space as a whole. They were drawn to Pomelo in part because its founders had been senior tech executives at leading fintech companies in the region and because many of its portfolio companies had already manifested the need for a better solution in this space.

Index Ventures’ Mark Fiorentino agrees that the company’s founder-market fit was crucial in his firm’s decision to invest.

“They have the DNA of the most well-known payments companies within the LATAM fintech ecosystem… and have lived through the pain points and keyed in on this opportunity through firsthand experience,” he said.

In general, Fiorentino believes that while the need for embedded financial products is becoming increasingly ubiquitous in the Latin American market, it’s important to note that the region “is far from a carbon copy” of the U.S. market with different dynamics.

For one, he said, existing solutions in the Latin American market are either “outdated” offerings from legacy financial institutions or “subpar” iterations from U.S. incumbents.

“It takes over 12 months for a business to spin up a plastic or digital card for itself. And because most legacy processors are owned by banks or large financial institutions that have been around for decades, pricing is inflexible and expensive,” Fiorentino told TechCrunch. “And if that wasn’t enough of a headache, stable reliability has been a huge pain point with these issuer processors. Pomelo is building the dev-first, self-serve API solution to address this clear market need.”

Looking ahead, Pomelo plans to use its new capital in part to open offices in São Paulo, Brazil and Mexico City, and hire dozens of people in those cities as well as in its home base of Argentina. The company currently has about 15 employees, 11 of which are engineers. It of course plans to continue building out its offering.

#api, #argentina, #biz-stone, #brazil, #buenos-aires, #finance, #financial-technology, #fintech, #fintech-infrastructure, #fj-labs, #google, #index-ventures, #latin-america, #marqeta, #mastercard, #max-levchin, #mexico-city, #monashees, #money, #online-payments, #payments, #payments-infrastructure, #paypal, #pomelo, #recent-funding, #sao-paulo, #startup, #startups, #stone, #tc, #tripadvisor, #united-states

Raising $22.5 million, Liftit looks to expand its logistics services in Brazil, Mexico, Chile, and Ecuador

The Colombian trucking and logistics services startup Liftit has raised $22.5 million in a new round of funding to capitalize on its newfound traction in markets across Latin America as responses to the COVID-19 epidemic bring changes to the industry across the region.

“We’re focusing on the five countries that we’re already in,” says Liftit chief executive Brian York.

The company recently hired a head of operations for Mexico and a head of operations for Brazil as it looks to double down on its success in both regions.

Funding for the round was led by Cambridge Capital and included investments from the new Latin American focused firm H20 Capital along with AC Ventures, the venture arm of the 2nd largest coca-cola bottler in Latam; 10x Capital, Banyan Tree Ventures, Alpha4 Ventures, the lingerie brand Leonisa; and Mexico’s largest long haul trucking company, Grupo Transportes Monterrey. Individual investor, Jason Radisson the former chief operating officer of the on-demand ride hailing startup 99, also invested.

The new capital comes on top of Liftit’s $14.3 million Series A from some of the region’s top local investors. Firms like Monashees, Jaguar Ventures and NXTP Ventures all joined the International Finance Corp. in financing the company previously and all returned to back the company again with its new funding.

Investors likely responded to the company’s strong performance in its core markets. Already profitable in Chile and Colombia, Liftit expects to reach profitability across all of its operations before the end of the year. That’s despite the global pandemic.

Of the 220 contracts the company had with shippers half of them went to zero and the other half spiked significantly, York said. While Liftit’s major Colombian customer stumbled, new business, like Walmart, saw huge spikes in deliveries and usage.

“Managing truck drivers is incredibly difficult, and trucking, in our opinion, is not on demand,” said York. “At the end of the day the trucking market in all of Latin America is a majority of independent owners. They’re not looking for on-demand work… they’re looking for full time work.”

Less than one percent of the company’s deliveries come from on-demand orders, instead, it’s a service comprised of scheduled shipments with optimized routes and efficiencies that are bringing customers to Liftit’s virtual door. 

“We do scheduled trucking delivery so we integrate with existing systems that shippers have and start planning how many trucks they’re going to need and the routes they’re going to take and … tee it up exactly what is going to happen regardless what the traffic conditions are so we have been able to reduce the delivery times for the trucks,” said York. 

#brazil, #chief-operating-officer, #chile, #colombia, #jaguar-ventures, #latin-america, #mexico, #monashees, #online-food-ordering, #tc, #walmart

Pipo Saude raises $4.6 million to bring healthcare benefits management services to Brazil

Pipo Saude, a Brazilian provider of healthcare services for businesses and their employees, has raised $4.6 million in a new round of funding to expand its footprint in Brazil.

“The company’s platform offers recommendations for the healthcare products that fit the team, enabling businesses to improve the quality of life of their employees,” said chief executive and co-founder, Manoela Ribas Mitchell. “We go all the way to the end beneficiaries.”

Pipo Saude helps companies price their insurance appropriately and bring down the medical loss ratio that companies suffer. Medical inflation in Brazil may be worse than in the US, with prices rising at around 20 percent per year.

Like the US, people in Brazil often default to hospitals and urgent care facilities when they’re sick or injured, that “urgent care culture” as Mitchell calls it drives up the cost for providers and employers. “We try to move the needle toward preventive care and specialist doctors” Mitchell said.

Backing the company with a $4.6 million round are two of Latin America’s top investment firms — Monashees and Kaszek Ventures . OneVC, the San Francisco-based investment firm that also invests in Latin American tech companies also participated in the round.

Pipo Saude makes money off of commissions and has a few corollaries in companies like Zenefits (in its earliest days), Amino, or the Canadian care benefit management company, Mitchell said.

The company currently has about thirty employees on staff, and some of the new cash will be used to scale the business.

For co-founders Mitchell, Vinicius Correa, and Thiago Torres, the healthcare market was an obvious choice when they looked to start their own company. Torres and Mitchell had known each other as students at the University of Sao Paolo where they both studied economics. Mitchell and Torres both pursued careers in private equity, where she worked at Temasek and then at Actis, focusing on healthcare, while Torres also went to Agavia Investimentos.

Correa worked in startups, initially as an employee at Nubank where he met Mitchell through a mutual friend.

While healthcare may be a tough knot to unravel — especially for a startup — the size of the Brazilian market alone is enormous. “We’re talking about a $50 billion revenue pool,” says Mitchell. “If we want to build a very robust product we have to focus on Brazil for quite a while.”

#amino, #articles, #brazil, #health, #healthcare, #kaszek-ventures, #latin-america, #monashees, #nubank, #san-francisco, #tc, #temasek, #united-states, #zenefits