Bill.com has announced that it has raised $88 million in a round of funding led by Franklin Templeton. Mastercard, Fidelity Investments Canada ULC, Kayne Anderson Rudnick, Temasek, Cross Creek, and FLEETCOR also participated in this round. Including this round, Bill.com has raised over $275 million. According to a Forbes report, Bill.com’s valuation is now $1.1 billion.
As the small and midsized business segment represents a massive U.S. business payments market, business payment organizations have been lagging behind consumer payment options. There are more than $58 trillion in B2B payments made annually with 80% of them being paper checks — which comes at a high cost and potential for errors.
“Bill.com is changing how payments are made in the SMB market by defining an industry leading payment and software platform for SMBs. Businesses struggle with conventional payment processes which are complex, manual, paper-based and not always secure,” said Bill.com CEO and founder René Lacerte. “Our cloud payment platform is changing all that. We automate payments and back-office business processes resulting in significant efficiencies and cost savings.”
Bill.com’s cloud-based Payment Management Platform automates, streamlines, and controls the payments process — which saves more than 50% of the time typically spent. And Bill.com is currently positioned to scale with a network of over 3 million members paying and getting paid through the service. Now the company manages over $60 billion in annual payment volume via partnerships with the leading U.S. financial institutions and technology companies.
Over 70 of the top 100 U.S. accounting firms leverage Bill.com to help clients automate AP and AR along with providing client advisory services.
“This is the Golden Age of SMB software and B2B payments with a huge market that’s ready for adoption. Bill.com is a clear category leader with a mission to make it simple for businesses to connect and do business,” added Anthony Hardy of Franklin Templeton. “The company has the right SaaS solution, ecosystem partners, significant customer base, and team to scale and capitalize on this significant opportunity.”
Bill.com also announced a partnership with Mastercard to offer virtual cards as part of the company’s automated accounts payable solution for small and midsize businesses. With the addition of Mastercard virtual cards, there is a new electronic alternative to checks. Payments made through virtual card provides faster funds availability to suppliers along with the data need to easily match payments with receivables.
Bill.com’s SVP of Product Bora Chung pointed out that the company is excited to partner with Mastercard and the goal is to “enable automated electronic disbursements and collections is completely aligned with Mastercard’s vision of a world beyond cash and checks.” And Mastercard’s North America Small Business Lead Ginger Siegel explained that their goal is to empower small business owners “with the right tools and resources to run their business.”
