Commercial bill pay company Plastiq will continue to help SMBs maximize their working capital with the close of a $75 million Series D funding round led by B Capital Group.
Founded in 2012, U.S.-based Plastiq enables SMBs to use their credit cards for almost any expense, even where plastic isn’t accepted, as well as be paid in any form, including checks, wire transfers and ACH transfers. The platform also provides real-time insights into SMBs’ payments, cash flow and working capital.
Plastiq recently revealed that well over 1 million SMBs and other customers are using its services, and it is on track to process more than $2 billion in transactions.
The outbreak of a global pandemic has many SMBs struggling to stay afloat. In a recent PYMNTs survey of over 200 SMBs, 84 percent said they have seen their revenues decline in just the last three weeks, while only 8 percent reported that they have three or more months of capital to lean on. And while 37 percent SMBs are confident they will survive; 26 percent aren’t as confident.
Plastiq’s platform could help these companies hold onto their cash while the economy is in flux. “SMBs are the lifeblood of our economy, and in light of the economic uncertainty, now more than ever they will need innovative ways to maximize their working capital and protect cash reserves,” said Eliot Buchanan, CEO and co-founder of Plastiq.
While Buchanan wouldn’t reveal Plastiq’s current valuation or revenue, he told TechCrunch the company is not too far away from $100 million in revenue. During the past year, the company saw a 150 percent increase in SMB revenue.
Kleiner Perkins, Khosla Ventures, Accomplice and Top Tier Capital Partners, all previous investors, also participated in the round. Plastiq has raised more than $140 million to date.
Plastiq also plans to expand its partnerships in the financial and payments sectors. Last year it announced that US Visa commercial cardholders were able to use its platform to pay vendors. The company also has partnerships with American Express, Discover, Mastercard, and JCB.