Australian startup Invoice2go today announced that it has raised a further round of funding, closing a $15 million Series C capital raise. The application is the number one mobile invoicing app on the App Store globally, and currently processes in excess of $1 billion in invoices per month via its platform.
The round was led by existing investors Ribbit Capital, a Silicon Valley firm that specialises in disruptive financial tech companies like Gusto, Wealthfront and Xapo. Other investors that went in on this round include Accel Partners, who were part of the startup’s $35 million round of funding in 2014. This brings the total amount of funding raised by Invoice2go to date to $50 million.
Founder Chris Strode said that the funding will allow the business to leverage off its strong position globally to aggressively widen its footprint in the FinTech space with the development of new features, and to assist small businesses and enable them to experience more growth with its suite of tools.
“We’ve always kept a keen eye on solving real life challenges shared by business owners around the world, and we take great pride in making world-class software accessible for everyone,” says Strode. “The funding we’ve raised will help us serve our customers in new ways, as we continue to bring the FinTech revolution to every type of small business owner who wants a simpler way to get paid, from tradespeople and service professionals to creative freelancers.”
The startup has experienced some pretty rapid growth in recent years, servicing over 200,000 businesses since it launched. The company has always been focused on helping small businesses and it has been extremely successful as a result of that single focus. This additional financing is going to enable Invoice2go to build on that foundation, fuelling its growth even further.
Ribbit’s investment is also quite significant, and it has come from working closely with the company over the past year and seeing first hand how it is solving the problems faced by millions of small business owners.
“They wanted to make a larger investment in the company,” says Strode. “We’ve laid a lot of groundwork over the past year and this new round of funding gives us the right amount to help us turbocharge our efforts and accomplish what we are now perfectly positioned to do.”
Micky Malka, founder of Ribbit Capital, echoed the sentiment, stating that, “Businesses are interacting more and more through Invoice2go and we’ve been thrilled to be a part of it over the last year. We’ve now significantly increased our ownership through [this] Series C financing to further support what we believe is one of the most exciting financial software companies today.”
In conjunction with the announcement, the company also announced that is has introduced a new mobile payments feature that will allow small businesses and freelancers to accept credit and debit card payments from customers in order to get paid faster. This feature will be powered by Stripe Connect, one of the startup’s new partners.
The new feature is unique because it integrates the entire billing process seamlessly into one app, a game-changer for every small business owner who has spent countless hours manually invoicing, collecting payment, and reconciling their accounts to keep on top of their cashflow. This new feature will roll out across Australia in 2016.
“I think one of the most powerful things about the feature for me is how simple it is,” says Strode. “It means that literally with one click, businesses will be able to immediately offer more payment options to their customers, straight through the invoice. No more waiting around or filling out endless paperwork to open a merchant account. Having been a small business owner, I know first hand how painful that process really is.”
“Also, it helps small businesses get paid quicker. We’ve always been focused on helping people get paid, so the fact that our customers no longer need to wait for a check in the mail is really exciting. Giving people easier ways to pay on the spot means businesses will see that money deposited in their bank account faster.”
Strode is excited about the next stage of growth for his business, especially at the prospect of being able to leverage his solid base of customers that use the product now on a daily basis.
He said, “We’ve now raised a significant amount of money, have a strong base of customers who use our product every day, and have the right team in place to aggressively deliver new features and products for small businesses everywhere.”