Financial tech company Fundbox, a B2B payment and credit network, raised another $20 million in Series C funding last week from Japan's MUFG Innovation Partners, raising its total equity funding from the round to almost $200 million.
MUFG Innovation Partners is the venture capital division of Mitsubishi UFJ Financial Group, Japan’s largest financial and bank holding company.
Fundbox's network helps sellers enhance close rates and boost order volumes by offering buyers more competitive net terms and payment plans. The company leverages machine learning to analyze transnational data in order to make accurate credit decisions.
The California-based company was founded by Eyal Shinar, Tomer Michaeli, and Yuval Ariav.
After the COVID-19 crisis began, Fundbox started paying its small business vendors every week instead of every two weeks and promised to continue aiming to do so until the crisis ends.
Eyal Shinar, the company's CEO, said “Our investments in real-time data access, machine learning, and automated credit management have helped us respond very quickly to this crisis, allowing us to continue serving the majority of our customers in addition to adding new customers.”
“The funding and support from sophisticated strategic investors like MUFG will enable us to continue investing in our technology platform and customer experience," he added.
The latest financing is said to have tripled the Japanese firm's investment in the company.
“We are pleased with how Fundbox’s advanced data science and technology capabilities have contributed to its superior portfolio performance, especially during COVID-19,” said Akihiko Okamoto, managing director and CIO at MUFG Innovation Partners. “Even in the face of these extraordinary economic conditions, the strength of the business has been impressive. Our team has great confidence in Fundbox.”