Finexio closes $23 million capital raise led by Medalist Partners

By Pavithra R

Finexio, simplifying accounts payable payments for medium and large corporates by digitizing manual paper checks has announced that the FinTech has closed $23 mn capital raise, led with a strategic investment from Medalist Partners, an alternative credit manager.

The investment round supports Finexio’s drive to optimize, simplify, and monetize corporate accounts payable process through its cloud-based AP payments platform. Besides Medalist Partners, the funding round saw participation from Florida Funders, Post Road Partners, Keith Meyers, Peter Wirth, Paul Friday & Lou DeRose, Stormbreaker Ventures, Alpine Meridian Ventures, Joe Proto, CEO of Transactis, Finexio senior management, and several leading FinTech and payments industry CEOs.

“This funding round represents a critical milestone for Finexio, enabling us to leverage our innovative payments platform to reach more customers just as CFOs are seeking cost reductions and greater automation in the face of margin compression and cash flow challenges due in part to COVID. Our business is at an inflection point with more businesses looking to us to optimize their AP spend and processes. There couldn’t be a better time for Finexio to capitalize on its ability to drive efficiencies and generate new cashflow and revenue for its clients,” said Ernest Rolfson, CEO of Finexio.

Finexio and Medalist also announced the launch of an integrated Supply Chain Finance (SCF) solution to complement its existing payment’s product. The SCF offering is expected to meet the needs of middle-market companiesto improve cashflow and providing essential liquidity for SMBs in the face of a recession.

“Creating win-win solutions for buyers and suppliers while strengthening supply chains in a critical time is smart for the country and business. With our SCF solution, Finexio now has the ability to offer suppliers payments When, Where, and How they want them, something not currently available to middle-market companies and their suppliers today,” added Rolfson.

“Our investment in Finexio represents our belief in the future of payments as a service. Finexio is ideally positioned to take advantage of the transition away from paper checks and manual processes towards payables platforms offering increased cash flow, lower costs, and automation,” said Greg Richter, CEO at Medalist.

The investment builds on Finexio’s impressive customer base, encompassing 400 customers representing $4 bn in annual AP spend, primarily in thehospitality, higher education, manufacturing, and business services verticals. The firm experienced explosive growth with its API oriented architecture into vertical-specific AP and Procurement software platforms. Its integrated AP and Procurement software installed customer base has over 150,000 bank accounts generating over $25 bn in accounts payable spend, most of that facilitated via paper check.

Also, read M1 Finance raises $45mn Series C funding to build next-gen Finance Super App.

Founded in 2015, Finexio is a rapidly growing AP payments as a service platform. Its comprehensive Accounts Payable “Payments as a Service”​ solution leverages proprietary analytics and robotic process automation to drive maximum conversion rates of suppliers to electronic payments.