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Other funders in the round include Mastercard Inc., Fidelity Investments Canada ULC, Kayne Anderson Rudnick, Temasek, Cross Creek, and FleetCor. Previously, Bill.com had raised $275 million from backers that include American Express, Bank of America, and JP Morgan Chase.
Bill.com offers digital payments solutions to small and midsized businesses. The Palo Alto, CA-based firm has more than 3 million members and manages an annual payment volume of about $60 billion.
While digital payments have become more common in the consumer space, the company reports that small businesses still cut checks for about 80% of the $58 trillion in business-to-business (B2B) payments made each year.
Moving those payments to electronic systems can cut down on transactional costs, reduce errors and improve security. Digital payments can also slash the time that businesses wait to get paid for services, alleviating a cash flow challenge that can be a significant pain point for startups.
Fintech companies are increasingly turning their focus to small and mid-sized businesses as an avenue for growth as the market for consumer digital payments services gets more crowded.
“This is the Golden Age of SMB software and B2B payments with a huge market that’s ready for adoption,” said Anthony Hardy, an equity investor at Franklin Templeton.
In addition to the funding, Bill.com also announced today a partnership with Mastercard to offer customers a virtual card, further expanding electronic alternatives for B2B payments.
Ambreen Ali is a freelance writer and editor based in the New York City area who specializes in business and technology. She has 15 years of reporting experience, including covering Capitol Hill and reporting from South Asia.