Yaydoo is set to expand its B2B fintech solutions. And thanks to its recent series funding, it’s on its way to achieving its goals.
With a Series A funding amounting to $20.4 million, the company is geared to scale up and expand across other Latin American countries. Base10 Partners and monashees led the round, and SoftBank’s Latin America Fund and Leap Global Partners joined them on the cap table.
It’s not surprising that investors saw the potential in this Mexico City-based software and payments company. After all, it has such a huge market to tap, with the global B2B industry having an annual value of $120 trillion.
Yaydoo basically offers tech for improving smart liquidity access, cash flow control, and linking ventures of all sizes to a tool system. With its three products – P-Card, PorCobrar, and VendorPlace – the company has come a long way since it first launched in 2017.
Innovating the B2B cashflow process
Entrepreneurs Sergio Almaguer, Roberto Flores, and Guillermo Treviño founded the startup. According to Almaguer, the idea for the startup came from seeing that fin tech is changing entire industries. Moreover, it’s changing tasks and how ventures do those tasks.
That said, many companies are still using old-school ways of doing cash workflows. It’s not because of a lack of innovation but because of certain challenges. These include the absence of easy-to-use tools, a lack of skilled labor, and meager budgets for automation.
Yaydoo aims to simplify the B2B fintech process by linking the vendors and users with a system of products. Not only will it help users have real-time control of their venture but it can also enhance liquidity. Not to mention, it could make B2B payments simpler and less tedious.
The startup’s products are earning good reviews across its market. After all, it helps bridge the working finance gap in Latin America, thus offering an all-in-one product for small ventures and mega-corps alike. In fact, Over 70,000 users have used Yaydoo’s network over the past year. And with COVID-19 pandemic foiling manual payment systems, it’s not at all shocking.
Geared for growth
With the recent shift to modern products due to COVID-19, fintech startups like Yaydoo are surely reaping the benefits. For instance, vendors are adding their clients to the system to make creating invoice, purchase orders, and other related tasks easier. And vendors are also making the most out of the products. In fact, the stats say their products have reduced 80 percent of time spent on paying vendors.
Yaydoo currently has a SaaS subscription model. With the Series A funding that they’ve just secured, however, they’re going towards a “freemium” approach. The startup hopes that this added aspect in their business model will convert users into subscribers.
Rexhi Dollaku of Base10 Partners said the team and the startup’s approach to B2B payments impressed them. Also, the firm liked how they synced such a complex system but still came up with easy-to-use products. With Yaydoo in place, vendors and users are hopeful about the progress of B2B payments in the region.
Aside from going beyond its home country, the startup has a lot of other plans with its new round of funding. The startup’s news release says it plans to use some of the funds for product development, something that’s a given in tech.
Also, Yaydoo says it also looks at future chances for working capital business. For instance, they would want to delve further into the number of invoice units and the presence of actual payments. In the same vein, they also want to ease the system of knowing how much money flows in and out. All these are in the hopes of making the B2B finance process more seamless.
