This neobank for India's small businesses just raised $31 million led by Sequoia Capital

• FloBiz, focused on small and medium businesses in India, has raised $31 million in a Series B funding round, led by venture capital firm Sequoia Capital India, along with Think Investments.
• The capital will be deployed for team expansion, product development and scaling distribution to serve more businesses.
• Besides business expansion, FloBiz looks to triple its engineering, product and data teams within the next six months.

Flobiz, a neobank focused on small and medium businesses in India, has raised $31 million in a Series B funding round, led by venture capital firm Sequoia Capital India, the company said in a press release on Monday.

The round also saw participation from early-stage VC firm Think Investments, along with FloBiz’s existing investors Elevation Capital and Beenext.

Neobanks are fintech firms that partner with banks and non-banking financial companies in order to provide digital banking services to its customers.

Besides VC firms, the Bengaluru-based firm also got money from Paytm Founder and Chief Executive Officer (CEO) Vijay Shekhar Sharma, CRED Founder and CEO Kunal Shah, neobank Jupiter’s Founder Jitendra Gupta, Pine Labs’ CEO Amrish Rau, among others.

“The capital will be deployed for team expansion, product development and scaling distribution to serve more businesses. FloBiz will also focus on building additional technical capabilities within the organisation, as it prepares to venture into financial services soon,” the company said.

Apart from business expansion, the firm is also planning to triple its engineering, product and data teams within the next six months.

The fresh round of funding, said Rahul Raj, co-founder and CEO of FloBiz, will help the company accelerate its ongoing projects, including building personalisable modules and features into myBillBook, diversifying core product offerings and preparing to roll out financial services “We have a slew of developments in the pipeline to further delight our SMB [small and medium businesses] partners in the next 12 months,” he said.

The company’s flagship product myBillBook, launched in January last year, helps small businesses digitise invoicing, streamline business accounting and automate workflows of their enterprises. Further, it helps in management of inventory, receivables and payables, along with providing an access to business reports.

Currently, the company claims to have over a million monthly active users, with businesses recording over $1 billion worth of transactions on myBillBook every month.

With over 5 million downloads across the country, myBillBook app is mainly used by businesses in Maharashtra, Delhi NCR, Uttar Pradesh, Gujarat and Tamil Nadu, which account for more than half of its total user base. The company looks to further strengthen its presence in Bihar, Rajasthan, Karnataka and West Bengal, it said.

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