Plooto raises $20m in Series B funding
By Edlyn Cardoza
Plooto, one of the leaders in end-to-end accounts payable and accounts receivable (AP/AR) automation software for small to medium-sized businesses (SMBs), announced the closing of $20 million (CAD 27 million) in Series B funding. The all-equity round was led by Centana Growth Partners, a specialised growth equity firm that invests in the future of finance, with participation from existing investors FINTOP Capital and Luge Capital.
“Plooto is the exact kind of forward-thinking company that we at Centana Growth look for in a partner,” said Ben Cukier, Partner at Centana Growth Partners. “They solve a real problem for their customers in an innovative way. We look forward to partnering with Plooto and redefining the industry.”
The funding will be used to drive customer expansion, introduce new product lines, ramp up hiring and help Plooto customise its offering for more businesses, accounting and bookkeeping firms.
“Our vision, since inception, has been to enable the advancement of entrepreneurs to reach their full potential without being bogged down by cumbersome and inefficient financial processes,” said Hamed Abbasi, CEO, and Co-Founder of Plooto. “By expanding our platform’s automation, workflows and payment capabilities, Plooto has become the mission control for managing cashflow end-to-end.”
Small businesses in Canada employ 10.3 million people and contribute 40% of the gross domestic product (GDP). In the United States, small businesses employ over 61 million people and contribute to 43.5% of the GDP. At the same time, poor cashflow management is the largest cause of failure for small businesses. Less than one in five survive their 10-year anniversary. “Beyond their economic contributions, entrepreneurs and SMBs, in general, have largely shaped our modern world and our mission is to see more of them succeed,” said Serguei Kloubkov, CTO and co-founder of Plooto.
Plooto raised $6.34 million (CAD 8 million) in Series A in early 2021, led by FINTOP Capital, with participation from Luge Capital and Inovia Capital. Hamed Abbasi and Serguei Kloubkov founded Plooto. While building their first company, the founders experienced firsthand the pain of operating a growing business. In 2015, Plooto began by building a payments platform for small businesses to achieve greater control, convenience, and visibility over their financial practices at a reasonable price point.
“We have been impressed by Plooto’s ability to execute and demonstrate results no matter the challenges of building a payments company and the macroeconomic environment,” said John Philpott, Partner at FINTOP Capital.
“As Plooto continues to grow, it is crucial to have growth partners that understand the complexities of the industry and share the same vision. Centana’s unrivaled network and experience scaling fintech companies will help us reach more businesses in North America,” added Abbasi.
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