- Paystand — one of the fastest-growing blockchain-enabled commercial payments platform — announced it has raised $20 million in Series B funding
Paystand — one of the fastest-growing blockchain-enabled commercial payments platform — announced it has raised $20 million in Series B funding. This round of funding includes new investment from DNX Ventures, Battery Ventures, Epic Ventures, Commerce Ventures, and Wildcat Ventures. And existing investors Leap Global Partners, BlueRun Ventures, and others also joined in the round.
With this funding round, the company plans to accelerate the expansion of its products and services, as well as expanding sales, marketing, success, and engineering teams in its Scotts Valley, California and Guadalajara, Mexico offices.
With the Paystand platform, it makes complicated commercial transactions and payments as easy and fast for enterprises as Venmo has done for basic consumer-to-consumer transactions. And it is considered the industry’s only solution for corporations and their finance teams that digitizes the entire enterprise cash cycle.
“We’re thrilled to bring together such an iconic group of investors who share our ambition for a more open financial system,” said Paystand CEO Jeremy Almond. “We made a promise to reboot commercial finance because it’s insecure, inefficient and built on trustless networks and technology. Today marks another step towards realizing that vision and transforming enterprise finance. We are committed to taking the industry and our customers on a ‘journey to zero,’ without fees, paper, or limits on growth.”
The Paystand model is rapidly gaining traction and in the past 2 years, the company added 80 new large enterprise customers and posted a 2.5x YoY increase in revenue as well as average monthly subscription growth of over 240%. Plus its payment ecosystem has surged 60% over the past 12 months with over 160,000 businesses transacting across the Paystand platform, saving tens of millions in fees.
“We’ve seen significant disruption in consumer payments from companies like Venmo, PayPal, and Square Cash,” added Mitch Kitamura, a managing director at DNX Ventures. “However, US B2B payments represent an even larger opportunity — currently over half of the $25 trillion in B2B invoices are still paid in paper check — yet no one stepped in to disrupt the market until Paystand. We are thrilled to be part of the team to help them realize the transformation in B2B finance.”
Paystand’s technology digitizes the cash cycle for companies in a wide variety of industries ranging from insurance to manufacturing to transportation to pharmaceuticals. Insurance companies use the platform to digitally receive premium payments and send claims money, and allows manufacturing companies to digitally pay suppliers and vendors. Some of the company’s current customers include JCB,, Allied Aerofoam, Punchh, Bugaboo, Covetrus, Parachute Home, and Vast Bank.
“For too long, the B2B payments model has been inefficient and paper-based—and that’s a problem as most companies today become more digitized and software-driven,” explained Neeraj Agrawal, a general partner at Battery Ventures. “Paystand’s technology helps companies in a variety of industries run more efficiently and cost-effectively automate customer payments, and we are excited to partner with management as they continue to scale.”