Small business financial platform Fundbox closed a $100 million Series D funding round this week. With this funding, the California-based company is now a freshly-minted unicorn with a valuation of $1.1 billion.
The round, which brings the company’s total funding to $553 million, was led by Healthcare of Ontario Pension Plan (HOOPP) and had contributions from existing investors Allianz X, Khosla Ventures, and The Private Shares Fund. New investors Arbor Waypoint Select Fund and funds managed by Newton Investment Management North America also contributed.
Fundbox was founded in 2013 to help small businesses access working capital through credit and payments solutions. The company has invested $100 million into AI technology with an aim to gain deep insights into the small business ecosystem.
Today’s investment comes at a time of growth for Fundbox. The company has experienced new customer acquisition growth of over 200% this year, has surpassed $2.5 billion in transaction volume, and has connected with over 325,000 businesses since launch.
The new capital will also help Fundbox expand into payments. The company is launching a tool called Flex Pay that will offer small business owners additional payment options and flexibility for business expenses. In addition to repaying loans via bank account or credit card, businesses have a buy now, pay later option in the form of a Line of Credit draw.
“The addition of Flex Pay to our product offerings is critical as small business owners look to utilize buy now, pay later solutions for business,” said Fundbox CEO Prashant Fuloria. “We remain committed to leveraging our superior AI, data-native approach, and small business insights to solve working capital needs and power the resurgence of the small business economy.”
Fundbox has additional financial products in the pipeline for next year. The company is working on a subscription revenue stream, a product for entrepreneurs with multiple small businesses, and tools to help new businesses that lack financial history.