Business-to-business payments platform Nium revealed Monday that it raised more than $200 million in Series D financing and saw its valuation rise above $1 billion.
The company, now Singapore-based however shifting to the Bay Location, promoted the financial investment as making it “the very first B2B payments unicorn from Southeast Asia.”
Riverwood Capital led the round, in which Temasek, Visa, Vertex Ventures, Atinum Capital, Beacon Equity Capital and Rocket Capital Investment got involved, along with a group of angel financiers like DoorDash’s Gokul Rajaram, FIS’ Vicky Bindra and People Capital’s Arjun Sethi. Consisting of the new funding, Nium has raised $300 million to date, Prajit Nanu, co-founder and CEO, informed TechCrunch.
The B2B payments sector is currently hot, yet underpenetrated, according to some specialists. To offer a concept just how hot, Nium was seeking $150 million for its Series D round, got commitments of $300 million from excited investors and decided on $200 million, Nanu stated.
“This is our 4th or 5th fundraise, but we have never had this type of interest before– we even had our term sheets in five days,” he included. “I believe this interest is since we’ve successfully handled to produce a global platform that is heavily managed, which offers us access to a lot of networks. This is an environment where payment shows up, and our core is powering frictionless commerce and allowing anyone to utilize our platform.”
Nium’s new round intensifies to a fire shared by a variety of business all going after a international B2B payments market valued at $120 trillion each year: recently, Paystand raised $50 million in Series C moneying to make B2B payments cashless, while Dwolla raised $21 million for its API that allows companies to build and help with quick payments. In March, Higo brought in $3.3 million to do the same in Latin America, while Balance, developing a B2B payments platform that permits merchants to offer a variety of payment approaches. raised $5.5 million in February.
Nium’s approach is to offer access to a worldwide payment infrastructure, including card issuance, accounts payable and receivable, and banking-as-a-service through a single API. The business’s network allows clients to then send out funds to more than 100 countries, pay in more than 60 currencies, accept funds in seven currencies and concern cards in more than 40 countries, Nanu said. The business also boasts money transfer, card issuances and banking licenses in 11 jurisdictions. Francisco Alvarez-Demalde, co-founding partner and managing partner at Riverwood, stated in an email that the mix of software– plus regulatory licenses– and operating a fintech facilities platform on behalf of corporates and neobanks is an international pattern experiencing hyper-growth.
Riverwood followed Nium for several years, and its future vision was what got the firm thinking about belonging of this round. Alvarez-Demalde stated that “Nium has the incredible mix of an excellent market opportunity, a skilled founder and group, and our company believe the company is poised for global growth based upon underlying nonreligious innovation trends like increasing real-time payment capabilities and the expansion of cross border commerce.
“As a main payment facilities in one API, Nium is a catalyst that opens cross-border payments, regional accounts and card issuance with a network of regional market licenses, partners and banking relationships to help with moving money throughout the world,” he added. “Enterprises of all types are embedding financial services as part of their consumer experience, and Nium is a crucial global enabler of this pattern.”
Nanu said the brand-new funding makes it possible for the company to transfer to the United States, which represents 3% of Nium’s earnings. He wishes to increase that to 20% over the next 18 months, as well as broaden in Latin America. The investment also gives the company a 12- to 18-month runway for further M&A activity. In June, Nium acquired virtual card issuance company Ixaris, and in July obtained Wirecard Forex India to expose it to India’s market. He also prepares to expand the company’s payments network facilities, invest in item advancement and add to Nium’s 700-person headcount.
Nium already counts hundreds of enterprise business as customers and plans to onboard thousands more in the next year. The business processes $8 billion in payments annually and has actually released more than 30 million virtual cards because 2015. Meanwhile, profits grew by over 280% year over year.
All of this growth puts the business on a trajectory for a going public, Nanu said. He has already spoken to people who will assist the business formally start that journey in the very first quarter of 2022.
“Unlike other companies that raise cash for new items, we intend to broaden in the existing sets of what we do,” Nanu stated. “The U.S. is a brand-new market, but we have a good brand and will utilize the brand-new round to supply a much better experience to the client.”
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.
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