India-based SME-focused neobank, FloBiz has recently secured $31 million in a Series B funding round led by Sequoia Capital India and Think Investments along with existing investors Beenext and Elevation Capital.
The funding round also saw participation from well-known angel investors including Kunal Shah (CRED), Vijay Shekhar Sharma (Paytm), Neeraj Arora (Hallo App), Amrish Rau (Pine Labs), Jiten Gupta (Jupiter), Ankit Tomar (Bizongo), Nitin Gupta (Uni Cards), Krishnan Menon (BukuKas), and Sayali Karanjkar (PaySense).
FloBiz plans to use this fresh funding for expanding its team, scaling distribution to aid more businesses, and in product development. The startup will also focus on developing additional technical capabilities as it prepares to venture into financial services.
According to Rahul Raj, co-founder and CEO of FloBiz, “We’re extremely thrilled to have Sequoia Capital India & Think Investments along with such a stellar set of angels back us on our mission. This raise will help us accelerate projects which have been in the works up till now – building personalisable modules & 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.”
The flagship product, myBillBook of FloBiz that was launched in January 2021 to help small and medium business owners in digitizing invoicing, automate workflows of their organization, and streamline business accounting. The system helps them to manage payables & receivables, maintain inventory, and access important business reports to allow efficient decision making.
The product has more than a million monthly active users and now records more than $1 billion worth of transactions per month. myBillBook is presently available in Hindi, English and Gujrati and has been consistently rated among top apps under the business category on Google Play Store. FloBiz plans to launch the app in five more regional languages within the next six months.
The startup is looking at enhancing its flagship product with technologies such as artificial intelligence and image processing to make the onboarding process easier for less tech-savvy business owners especially in tier 2 and 3 cities of the country to promote digital accounting.
myBillBook app with over 5 million downloads across India has a strong presence in regions like Delhi NCR, Uttar Pradesh, Maharashtra, Gujrat, and Tamil Nadu. While FloBiz will continue to strengthen its presence in these states but will also lay its focus on other states such as Karnataka, Bihar, Rajasthan, and West Bengal.
Founded in 2019 by Aditya Nayak, Rahul Raj, and Rakesh Yadav, FloBiz is India’s first neo business platform for SMBs across India.
Before this funding, FloBiz had raised $10 million in March 2021 in a Series A round from Elevation Capital and its existing investors.