Bengaluru-based FloBiz, a startup that is building neobank for small- and medium-sized businesses in the South Asian market, today announced it has raised $31 million in a new funding round led by Sequoia Capital India and Think Investments.
The funding round also joined the likes of existing investors Elevation Capital and Beenext and high profile entrepreneurs, including Vijay Shekhar Sharma of Paytm, Kunal Shah of CRED, Jiten Gupta of Jupiter, Amrish Rau of Pine Labs, Krishnan Menon of BukuKas, and Nitin Gupta of Uni Cards.
FloBiz will infuse the raised capital in team expansion, product development, and scaling distribution to serve more businesses. The startup will also focus on building additional technical capabilities as it prepares to launch its financial services soon.
In late March 2021, FloBiz had raised $10 million in its Series A round led by Elevation Capital, BEENEXT, iSeed, and Greenoaks Capital. Following the current round, the startup’s total raised amount now stands over $41 million.
Founded by Rahul Raj, Rakesh Yadav, and Aditya Naik, FloBiz, which operates myBillBook, helps small business owners to digitize invoicing, streamline business accounting, and automate workflows of their enterprises. The platform businesses maintain inventory, manage receivables & payables, and access important business reports to enable efficient decision making.
The startup claims to have over million monthly active users, processing over $1B worth of transactions on the myBillBook platform. It also said that it will add support for five more regional languages on myBillBook, currently it supports Hindi, Gujarati, Tamil as well as English.
Speaking on the development, Rahul Raj, Co-Founder & CEO of FloBiz, said: “We’re extremely thrilled to have Sequoia Capital India & Think Investments along with such a stellar set of angels back us on our mission. This raise will help us accelerate projects which have been in the works up till now – building personalizable modules & features into myBillBook, diversifying core product offerings and preparing to roll out financial services.”
“We have a slew of developments in the pipeline to further delight our SMB partners in the next 12 months,” he adds.
“Small businesses are the real heroes of our economy. In order to power the SMB economy with technology, one needs deep understanding, instinct, and empathy for this audience,” Tejeshwi Sharma, managing director, Sequoia Capital India, said. “We are really impressed by the user-centricity, product focus and experimentative approach of the FloBiz founders. There is almost a perfect founder market fit. The team is stoked to partner with FloBiz on their mission of building a neobank for the growing SMBs of India.”