SAN FRANCISCO — Plastiq, a service that lets businesses and consumers pay bills by credit card, has raised $27 million in Series C financing. The round was led by Kleiner Perkins with participation from DST Global. Kleiner Perkins general partner, Ilya Fushman, will join the Plastiq Board of Directors. The funds will be used to accelerate growth and roll out new services that help business owners and entrepreneurs more fully tap into their existing credit card lines to fund business expansion.
According to Bank of America, more than two out of three businesses plan to expand in the next five years yet one in three express concern about credit availability. For many businesses, credit cards are their most accessible financing tool, providing a revolving line of credit they can immediately use to fund or expand business operations. With Plastiq, business owners can pay virtually all their expenses by credit card, which allows them to better manage cash flow, tap early pay discounts and earn card rewards.
With this round of funding, Plastiq will develop and deepen its partnerships with key players in the financial and payments sectors, such as MasterCard and other major card brands. “In the past year, we’ve seen a much greater interest for Plastiq’s services across the payments ecosystem. Business owners and consumers alike have told us they want to use their credit cards to pay any expense they wish, whether it’s business supplies or rent,” said Eliot Buchanan, Plastiq CEO. “This latest investment will help us make Plastiq more available to our customers wherever is most convenient for them.”
Metro Vein, a specialty medical clinic with more than 12 locations across Michigan, New Jersey, New York and Texas, uses Plastiq to pay its vendors who do not accept credit cards. “With Plastiq, I was able to invest in a new line of business that has enabled me to more than double our revenues in the last ten months,” said CEO Dmitri Ivanov. “Using the service was simple and I consider the company a must-have for any business owner who is looking to expand operations.”
“Today’s payments market is undergoing a rapid transformation driven by advancements in technology that benefits both businesses and consumers,” said Ilya Fushman, General Partner, Kleiner Perkins. “Plastiq holds a unique value proposition that not only empowers small business owners to continue growing their operations, but also offers an advanced platform that makes it possible to pay for their most important expenses and obtain the capital they need, anytime and anywhere.”