FinTech Unicorns Affirm, Bill.com Raise Over USD300 Million
- Written by TechXO Team
- Category: Fintech
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Consumer credit startup Affirm has reportedly raised around USD300 million at a USD2.9 billion post-money valuation. The Series F round has taken the company, which is based in San Francisco, to more than USD1 billion in total funding. In December 2017, the company also raised around USD200 million, during its Series E round.
Among those who participated in the latest financing are Thrive Capital, Fidelity, Wellington Management, Baillie Gifford, and Sound Ventures.
Affirm was launched in 2012 with the help of Paypal co-founder Max Levchin. The company was created to help consumers deal with transactions without the use of credit cards. The mobile app also offers its customers installment loans, among others, at the point of sale (POS).
Affirm provides a closed-end installment loan product through a platform called “Buy with Affirm.” This allows users to buy goods or services online and pay off purchases in fixed monthly payments. Users can then select Affirm as their payment method at checkout, choose the payment plan that fits their budget, and process their order, among others. Affirm was incorporated in 2012 and is currently based in San Francisco, California.
Bill.com raises USD88 million
Bill.com, which is based in Palo Alto, also reportedly raised around USD88 million. The funding round was led by Franklin Templeton, Mastercard, and Fidelity Investments Canada ULC, among others. The latest round has taken Bill.com to over USD347 million in total venture raised over time. This catapulted Bill.com to unicorn status with more than USD1 billion in valuation. The company was founded in 2006 and is a cloud-based business payments and software platform, targeting the small and medium-sized business (SMB) market. The company reportedly stated that it is currently focusing on building and solving the biggest problems for customers and it is just doing the right thing for businesses as well. The company further stated that it helps automate payments and back-office business processes, helping customers achieve efficiency and save costs.
Bill.com is currently dealing with more than 3 million members. It also manages more than USD60 billion in annual payments.
Bill.com is a digital business payments company. It creates cloud-based accounts payable (AP) and accounts receivable (AR) solutions for businesses, accounting firms, and banks. Bill.com has an automated system that takes scanned, fax, or emails of bills and routes to approvers. It also provides one-click access to any needed backup docs.
Bill.com has a business payments platform. This helps businesses automate bill approvals and payment processes, speed payments from customers, and simplify check approval, among others. It also has an accountant program that offers a streamlined AP/AR service, an accountant console, and wholesale discounts, among others.
Bill.com also has a banking platform that is used for payments processing, governance, document management, and workflow and collaboration, among others. The company reportedly has a strategic partnership with American Express Company. It is also formerly known as CashView, Inc. and changed its name to Bill.com, Inc. in January 2008.
The company was founded in 2006 and is currently based in Palo Alto, California.
Consumers are now becoming more accepting of technology as part of their daily finance needs. This is a factor that has led the traditional institutions to be on par with the financial services sector and leveled the playing field. Startups led a monumental shift in the way clients are managing their money. PwC’s Global Fintech Survey 2017 found that 84% of banks and other traditional financial services providers believed that clients were already making payments with Fintech companies while 68% thought customers were conducting fund transfers. Further, results from the survey revealed that 60% of the incumbent institutions said that clients were using Fintech for their personal finances.
This is the reason why most experts say Fintech is disruptive. However, the potential of Fintech is boundless. The future of Fintech will be much less disruptive if partnered with big traditional institutions making it much more collaborative. It is also perceived that emerging technologies and practices will improve financial services for consumers and businesses alike. Below, is a list of developments that will shape the future of finance technology.