FundThrough has acquired the invoice factoring business of Redwood City, California-based financial technology company BlueVine. No financial terms were disclosed. Toronto-based FundThrough, a financial technology platform that solves cash flow challenges for enterprises, is backed by Northleaf Capital Partners, ScaleUP Ventures and others. BlueVine’s investors include Lightspeed Venture Partners, Menlo Ventures and M12.
TORONTO–(BUSINESS WIRE)–FundThrough, a financial technology platform that solves cash flow challenges for growing businesses through fast invoice payments, today announced that it has acquired the invoice factoring business of financial technology company BlueVine. The acquisition fast tracks the company’s strategic focus on embedded finance and its expansion efforts in the U.S. market, doubling the number of U.S. clients that will rely on FundThrough to turn unpaid invoices into working capital. All BlueVine invoice funding division employees are joining FundThrough as part of the transaction.
FundThrough has grown 1,071% over the past three years and almost 300% since last year, funding thousands of B2B clients since the company was founded in 2014. The fintech company has scaled to process more than USD$120 million dollars in funding per month while being extremely capital efficient, having only raised $25 million dollars in equity since its inception. The acquisition is expected to more than double the number of funding transactions that FundThrough makes annually.
Cash flow is the number one problem facing small businesses. According to QuickBooks data, 81% of surveyed businesses said that their customers had been late on their payments more often in 2021 compared to previous years, and 89% said late payments limit their growth. According to FundThrough client data, small businesses wait 60 days on average for customers to pay their invoices. FundThrough addresses this issue through its AI-powered funding platform, which generates automated offers for a seamless onboarding and funding experience. Through its technology, along with key partnerships with companies such as Intuit and Enverus, FundThrough cuts that waiting time by 97 percent to accelerate access to cash flow for small businesses.
“We are committed to helping small businesses grow and thrive – especially those who sell to large customers where long payment terms and a lack of financing options stand in the way of growing a business,” says Steven Uster, co-founder and CEO of FundThrough. “BlueVine was one of our biggest competitors in the U.S. market, and through this acquisition we can fulfill our mission on a much larger scale. We look forward to providing BlueVine’s invoice factoring clients with the same responsive, personalized customer service and seamless funding experience that FundThrough’s existing clients rely on and appreciate.”
In addition to accelerating its U.S. expansion, the acquisition also rapidly progresses another core FundThrough strategy: becoming the leader in embedded finance. The additional scale from new channel partnerships and relationships acquired through BlueVine — including all BlueVine factoring partners, who have now transitioned to FundThrough — will fuel FundThrough’s goal of being included within the workflow of B2B marketplaces, ecosystems, and apps where suppliers can request instant payment of their large customer invoices without leaving the workflow. This gives suppliers more opportunities to boost their cash flow, and levels the playing field for small businesses selling to large, powerful customers who often dictate long payment terms.
Based in Redwood, California, BlueVine provides financial services to small and mid-sized businesses. The company addresses the banking and working capital needs of business owners with a suite of products including BlueVine Business Checking, Payments, and Line of Credit. Factoring was BlueVine’s founding product.
“Since launching BlueVine, we’ve been focused on the financial needs of small businesses and are very proud of what we’ve been able to accomplish. As we evolve our products and services, we continuously examine how we can better serve our customers at scale,” says Eyal Lifsthiz, co-founder and CEO of BlueVine. “We determined that FundThrough is perfectly positioned to serve our factoring clients with the care and individual attention they need and deserve. Our factoring clients will be in great hands with FundThrough.”
FundThrough is a leading fintech company accelerating cash flow and enabling growth for small and medium sized businesses that sell to large customers and wait to get paid. Based in Toronto and operating across North America, FundThrough’s AI-powered invoice funding platform gives B2B businesses fast, customized funding offers to get their invoices paid in a few days – rather than a few months – and get quick access to cash they’ve already earned. For more information, visit fundthrough.com.