FloBiz, a neobank for the growing Indian SMBs, has raised $31 million in Series B round led by Sequoia Capital India, Think Investments and its existing investors Elevation Capital and Beenext.
The capital will be deployed for team expansion, product development and scaling distribution to serve more businesses. FloBiz will also focus on building additional technical capabilities within the organisation, as it prepares to venture into financial services soon.
The latest round also saw participation from renowned angels like Vijay Shekhar Sharma (Paytm), Kunal Shah (CRED), Jiten Gupta (Jupiter), Amrish Rau (Pine Labs), Neeraj Arora (HalloApp), Nitin Gupta (Uni Cards), Ankit Tomar (Bizongo), Sayali Karanjkar (PaySense) and Krishnan Menon (BukuKas), along with 9Unicorns and Whiteboard Capital.
FloBiz’s flagship product myBillBook was launched in January 2020 to help SMB owners digitise invoicing, streamline business accounting and automate workflows of their enterprises. It helps maintain inventory, manage receivables and payables, and access important business reports to enable efficient decision making. With over a million monthly active users, SMBs now record over $1 billion worth of transactions on myBillBook every month.
The company aims to launch the app in at least 5 more regional languages within the next 6-months. The product will also see deeper use of technologies like AI and image processing to make the onboarding process for the less tech-savvy SMB owners in tier 2 and tier 3 cities of India a delightful first step to digital accounting.
Rahul Raj, co-founder and CEO of FloBiz, said, “This raise will help us accelerate projects which have been in the works up till now - building personalisable modules and 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.”
“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. 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,” said Tejeshwi Sharma, Managing Director, Sequoia Capital India.
“As consumers, most SMB owners are exposed to best-in-class apps and software products. With the rapid acceleration in digital adoption over the last 18 months, the need for business tools and software that match those high standards is more acute than ever – myBillBook is a leader in this segment," said Mridul Arora, Partner, Elevation Capital.
Before the $31 Mn Series B capital raise, FloBiz had raised $10 Mn in Series A from Elevation Capital and existing investors in March 2021.
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