OatFi, an API-first fintech infrastructure company modernizing how B2B payments are financed, announced it has raised a $24 million Series A led by White Star Capital, with continued participation from existing investors Portage and QED.
What OatFi does: OatFi solves one of the most fundamental pain points in B2B commerce: payment terms. And by embedding its underwriting, origination, and funding capabilities directly into B2B payment platforms within their Accounts Payable (AP), Accounts Receivable (AR), and commercial charge card workflows, OatFi facilitates platforms with B2B transactions to set up built-in financing at the point where it’s needed most.
The company’s API-first approach is built for integration into the existing workflows of AP/AR systems, issuer processors, and payment platforms. And OatFi already counts leading infrastructure players, such as Unit, Transcard, and Galileo, as partners, and has integrated with over 25 platforms in the past three years.
Problem being solved: With traditional B2B transactions, buyers and suppliers often operate on opposing cash flow incentives. And suppliers seek fast post-delivery payments to recover working capital, while buyers look to delay payments to preserve operating cash and liquidity. This misalignment has historically relied on outdated solutions, such as checks, or required suppliers to act as de facto lenders to their customers. OatFi solves this problem with a modern set of APIs that provide a seamless, behind-the-scenes credit layer, delivering real-time underwriting, ledger, and capital to facilitate these transactions. Via OatFi’s APIs, parties on both sides of the transaction can operate on their terms without compromising working capital.
How the funding will be used: With this funding round, OatFi will accelerate product development and integrations across AP, AR, and payments infrastructure providers – advancing its mission to build a massive modern credit network.
KEY QUOTES:
“B2B payments are not just a money movement challenge—they’re a data and workflow challenge. That’s why we’ve focused on deep API integrations that offer working capital solutions within the platforms that businesses already rely on to pay and get paid.”
“Payment terms determine a business’s cash flow conversion cycle—regardless of size. We’re solving this problem where it matters most: at the point of invoicing and payment.”
Michael Barbosa, Co-founder & CEO of OatFi
“OatFi isn’t a ‘cherry on top’ for B2B payment companies looking to unlock a new revenue stream. It delivers a table-stakes product that enables trusted B2B transactions in a world moving rapidly online. First-generation fintech lenders offering MCA products helped support merchants serving consumers. OatFi is helping platforms facilitate commerce between businesses, where the stakes—and the volumes—are even higher.”
Eddie Lee, General Partner at White Star Capital
