Flexio, a platform revolutionizing business-to-business (B2B) payments in Latin America, announced that it has raised a $3 million Seed Round led by Costanoa Ventures with participation from Soma Capital, Latitud Fund, Omri Mor, Daniel Kahn, Diego Oppenheimer, as well as several notable LatAm founders and Y Combinator alumni.
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In 2014, the Mexican government passed a law requiring all B2B payments to be digitally documented to increase tax payments, a regulation that has since spread across Latin America. According to the World Bank, last year, B2B electronic payments totaled $180B in transactions in 2020 in Mexico alone. Today, it is a very manual and error-prone process that makes compliance especially challenging for small and medium-sized businesses (SMBs), which typically receive bills, contracts, and other documents in a variety of often unorganized ways, that may not have the staff or systems to manage data entry and approvals across multiple communications channels. These challenges also lead to a lack of visibility into cash flow given nothing is centralized in one place, and accurate, real-time information isn’t available.
“We experienced these challenges first-hand while building businesses in previous roles,” stated Nathan Schorr, co-founder and CEO of Flexio. “The traditional processes are inefficient and arduous, preventing timely payments and using up valuable employee resources while also negatively impacting cash flow management.”
Flexio automates accounts receivable (AR) and accounts payable (AP) for SMBs, taking care of pay-ins, payouts, communication, and integrations with enterprise resource planning systems (ERPs) and accounting software. With Flexio, customers can cut the time they spend on AR/AP by as much as 70%. This is achieved through:
- A modern interface that makes the platform dramatically easier to use than existing methods while still complying with government regulations.
- Cashflow analytics that keeps business owners updated on their companies’ financial health in real-time, with no reporting lags.
- Seamless integration with bank accounts and use of digital payments instead of traditional, manual logins.
- Automation of all invoicing and accounts receivable processes, including all communications, routing, and approvals.
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“Nine billion invoices were processed in Mexico alone in 2020. By focusing on SMBs doing business in Mexico, Flexio is providing a much-needed service for an underserved market,” stated Amy Cheetham, Partner at Costanoa Ventures. “We couldn’t be more excited about the Flexio team and the technology they are creating to address this huge market opportunity.”
SMBs businesses represent 70% of the region’s GDP and employ approximately 60%-70% of the region’s workforce. Flexio’s current customers include Impactum, Casa Fronda, and Grupo Promesa.
Flexio will use the funding to accelerate product production to help businesses automate bill payments and invoicing
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