Payment Terms

Libra raises $ 25 million in Series A led by Ribbit Capital to develop its ‘consumer-type B2B payment platform’ – TechCrunch

Balance, a payment platform for merchants and B2B marketplaces, raised $ 25 million in a Series A funding round led by Ribbit Capital.

Avid Ventures helped fund, in addition to existing backers Lightspeed Ventures, Stripe, Y Combinator Continuity Fund, SciFi VC, and UpWest. Other individual investors investing in the round include the early employees and executives of Plaid, Coinbase, Square, Stripe and PayPal, such as Jaqueline Reses, formerly the head of Square Capital. Funding comes just over six months after Libra announcement a funding round of $ 5.5 million.

The motivation to start the business was simple, said Bar Geron, CEO and co-founder: “We wanted to create an online B2B experience that doesn’t suck. He and Yoni Shuster, both former PayPal employees, started the company in early 2020.

B2B payments, he said, differ historically from B2C primarily in that they did not take place at the time of purchase (or at the point of sale) but rather within 30 days and with an invoice. . It’s not an efficient process for traders or sellers, the company argues.

During this time, Most companies have avoided paying for their supply with credit cards because the cards can run out quickly, Geron said.

“The one thing that keeps many merchants offline is payments,” he told TechCrunch. “It’s a process that gets stuck in the flow of these markets and prevents them from developing. We were fascinated by the problem.

After starting at Y Combinator, Balance has developed what he describes as a “Consumer-type B2B payment platform for merchants and marketplaces ”or a“ self-service digital payment experience business for B2B businesses ”.

This means that Libra has built a B2B payment platform that allows merchants to offer a variety of payment methods, including ACH, cards, checks, and bank transfers, as well as a variety of terms, including payment. on delivery, the terms of net payment and payment by stages. Behind the scenes, Balance secures the terms of transactions requiring funding by assessing the risk of the customer, merchant and specific payment terms selected. Libra is built on top of Stripe and offers all of Stripe’s credit card payment options, but then extends far beyond.

Libra, according to Geron, has invested “a lot” in APIs for marketplaces.

“We have a very robust API platform so that these businesses can handle the entire payment flow without being exposed to payment risk and regulation,” he told TechCrunch. “And all of this is happening without them even touching the funds.”

The advantage for traders is the ability to get immediate payment which is always reconciled as credits. Marketplaces are equipped with automated supplier disbursement, a comprehensive compliance framework and reconciliation management, according to Balance.

“We want to make the online payment experience for businesses as seamless as it is for consumer payments, and we want to do it globally,” Geron told TechCrunch.

The startup has already partnered with e-commerce giants such as BigCommerce and Magento and will soon be working with Salesforce as well, according to Geron. Its clients range from startups to publicly traded markets to e-commerce companies in various industries such as steel, freight, hardware, food orders, medical supplies and clothing. They include Bryzos, Choco, Zilingo, and Bay Supply, among others.

It’s just the start, but Libra has grown by around 500-600% since its last increase in February, Geron said. The company, which has offices in Tel Aviv and New York, has around 30 employees.

Jordan Angelos, general partner at Ribbit and former head of mergers and acquisitions and investments at Stripe, believes that the fact that Balance has built its platform specifically to “move quickly” markets and B2B merchants reflects a “good goal.” square “.

“B2B markets, for example, have a very particular set of payments and capital market needs that can be solved in a much more holistic and elegant way with Libra’s flexible toolbox than alternatives,” he said. he writes by e-mail. “Payments and cash are two sides of the same coin, and Balance’s products allow users to process them together to better serve their customers as well as their own margins.”

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