SAN FRANCISCO — Routable, a company developing a simple way to send and receive business-to-business payments, announced that the company has raised $30 million in Series B funding. The round was led by Sam Altman, CEO of Open AI and former president of Y Combinator, and his brother Jack Altman, CEO of Lattice. Additional investors include Flexport as well as angel investors, including Max Mullen (Instacart), Joe Gebbia (Airbnb), Aaron Levie (Box), Marc Benioff (TIME Ventures), Gokul Rajaram (DoorDash), Lachy Groom (formerly of Stripe) and Scott Belsky (Behance). Routable will use this funding to scale its team and expand into the enterprise space.
Making B2B payments is time-consuming, costly and mostly an arduous, manual process that doesn’t easily scale. Routable’s modern enterprise finance software combines 15 discrete AP/AR functions to automate 95% of the manual payments processes, such as updating accounting systems, processing compliance in bulk, and more, allowing companies to focus their engineering and finance talent on the tasks that matter most.
Routable’s foray into the enterprise market aims to replace internal tooling built for custom business payment flows. Since its launch from stealth in August 2020, Routable says it has grown revenue by 380% in addition to making strategic moves to position itself for the enterprise. As part of Routable’s API-first approach, Routable has already established integrations with Xero, QuickBooks, and NetSuite to support payables workflow and reduce manual intervention and will look to accelerate integrations to additional financial systems of record.
“There’s a huge market opportunity for us to address here with the B2B payments industry projected at approximately $125 trillion, with ACH, Cash & Check representing about $122 trillion of that market opportunity,” said Routable co-founder and CEO Omri Mor. “We’ve intentionally partnered with a new roster of investors from companies like Box, OpenAI, Instacart, Salesforce, DoorDash and more, with deep enterprise and high-growth experience. With their guidance, we will scale our team to build the best solution for high volume enterprise business payments.”
“The explosion of the gig economy over the past several years and the more recent boom in the creator economy are leading to a massive rise in the volume of both payments and payees creating a real business payment headache,” said Sam Altman, lead investor and former president of Y Combinator. “Routable has built an incredible product and team to tackle these pain points and has quickly become the backbone of some of the fastest growing businesses. With the addition of enterprise capabilities, we think this can lead to an enormous business and we’re thrilled to be supporting them as they scale.”