PALO ALTO — Bill.com, which operates a business payments and software platform, announced an $88 million funding round led by mutual fund company Franklin Templeton with participation from Mastercard, Fidelity Investments Canada ULC and others.
The small and midsized business segment represents a massive U.S. business payments market that’s ripe for disruption. While consumer payments have experienced abundant innovation, business payments have lagged behind. More than $58 trillion in B2B payments are made annually with 80% of them paper checks, which come at a high cost including potential for errors and security issues.
“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,” says René Lacerte, CEO and Founder of Bill.com. “Our cloud payment platform is changing all that. We automate payments and back office business processes resulting in significant efficiencies and cost savings.”
“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,” said Anthony Hardy, Franklin Templeton. “The company has the right SaaS solution, ecosystem partners, significant customer base, and team to scale and capitalize on this significant opportunity.”
In addition to investments by Franklin Templeton, Mastercard and certain funds managed by Fidelity Investments Canada ULC, other participants in the current round include Kayne Anderson Rudnick, Temasek, Cross Creek and FLEETCOR. Bill.com has raised more than $275 million to date which has included investments from American Express, Bank of America, and JP Morgan Chase.
Bill.com has a network of 3 million members, managing more than $60 billion in payments annually. Bill.com partners with the largest U.S. financial institutions, more than 70 of the top 100 accounting firms, major accounting software providers including NetSuite, Intacct, QuickBooks and Xero, and is the preferred provider of digital payments solutions for CPA.com, the technology arm of the American Institute of CPAs (AICPA).