Finexio, the fast-growing Accounts Payable (AP) Payments-as-a-Service company, announced the completion of its double over-subscribed $10 million funding in partnership with new investor Mendon Venture Partners that provided incremental growth capital to meet demand for digital AP business-to-business (B2B) payments services.
Finexio is winning business from top financial institutions eager to provide modern, cloud-based B2B payments technology to meet customer demand for digital payments and lending as embedded finance becomes increasingly in demand. This expansion in serving financial institutions complements how Finexio is already deploying at scale white label payment solutions in many of the leading global procurement and accounts payable software platforms across multiple sectors— including hospitality, healthcare, higher education, manufacturing, and construction.
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Ernest Rolfson, Founder and CEO of Finexio said, “Our ‘Payments as a Service’ platform allows banks to facilitate rich, personalized buyers and supplier interactions, more meaningful virtual card spend take rates, and more payment methods like international and supply chain finance than anything else out there. Finexio’s easily integrated payments solution and unique service culture make us highly attractive to financial institutions desiring deep differentiation to compete, win, and retain corporate treasury customers that generate fee income and enable more loan and deposit generation. We’re excited to continue supporting banks in their efforts to provide the best modern treasury experience possible for their customers.”
Mendon Ventures BankTech Fund, a recently launched fintech fund designed to help regional and community banks find new technology for both investment and deployment, invested $1 million to bring this financing round to $10 million in total. Andrew Marquardt, Founder and Managing Partner of Mendon Venture Partners said, “Finexio presents an exciting opportunity for banks to expand its offerings, better serve existing and new customers, reduce costs, and enhance overall value. Our investment and partnership highlight Mendon Venture Partners’ unique approach, thesis, and value-add position serving our bank LPs.”
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Patriot Financial Partners, Finexio’s lead investor, provided additional funding after tracking the company’s continued growth throughout 2021. Kirk Wycoff, Managing Partner of Patriot Financial Partners said, “The track record and impact of Finexio continues to impress, especially as it expands further into the embedded finance space and partnering with technology-leading financial institutions. Modernizing and improving the accounts payable payments process across industries still has a long way to go and Finexio will increasingly be a critical solution provider.”
“For banks, the payoff from partnering with (tech-savvy) tech-focused funds like Mendon and Patriot offers easy access to leading fintech innovation, large potential investment gains, and significant competitive advantages in their day-to-day operations,” Joe Proto, Finexio chairman remarked. “With its seamless integrated payments solution, Finexio stands out as an easy win for banks seeking to upgrade their offerings.”
This past August, Banc of California (NYSE: BANC) invested in Finexio to deepen its portfolio of product offerings for its business clients and partner with Finexio to build out payment and related loan and deposit services. The companies intend to roll out a market leading AP B2B payments and working capital offering for both Finexio’s and Banc of California’s customers by the second quarter of 2022.
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