US B2B payment and credit network Fundbox has secured a fresh equity investment from MUFG Innovation Partners, the corporate capital arm of the giant Japanese bank.
With this financing, MUFG tripled its investment in Fundbox’s recent Series C, bringing the total equity funding in the round to almost $200 million.
"We are pleased with how Fundbox’s advanced data science and technology capabilities have contributed to its superior portfolio performance, especially during COVID-19," says Akihiko Okamoto, managing director and chief investment officer for MUFG Innovation Partners. “Even in the face of these extraordinary economic conditions, the strength of the business has been impressive. Our team has great confidence in Fundbox.”
The firm says it has seen increased momentum in originating credit for existing customers and in enabling faster payments for B2B suppliers during the spread of the virus.
Despite a modest increase in losses early in the pandemic, key portfolio health indicators are now back at, or better than, pre-crisis levels, says Eyal Shinar, founder, and CEO of Fundbox.
"Our investments in real-time data access, machine learning, and automated credit management have helped us respond very quickly to this crisis, allowing us to continue serving the majority of our customers in addition to adding new customers,” he says. “The funding and support from sophisticated strategic investors like MUFG will enable us to continue investing in our technology platform and customer experience."
Since the company’s founding in 2013, Fundbox has raised more than $400 million from a blue-chip group of investors led by Khosla Ventures, Allianz, MUFG Innovation Partners, General Catalyst, Spark Growth Capital, Arbor Ventures and Bezos Expeditions.