Accounts payable firm MineralTree has raised $50 million and acquired two companies in the AP automation and B2B payables space, Inspyrus and Regal Software, to expand its position in the mid-market segment.
The Series D investment round was secured from existing investors Great Hill Partners, .406 Ventures, and Eight Roads Ventures.
MineralTree, which services 2,000 mid-market and mid-enterprise companies, as well as more than 25 financial institutions, says it is experiencing increasing demand as businesses focus on addressing both pandemic-related work-from-home mandates and rising costs associated with manually processing invoices and B2B payments.
$27 Trillion in B2B payments are made in North America every year and businesses spend an estimated $510B on direct and indirect manual AP costs making those payments. By automating AP, MineralTree claims businesses can save as much as 80% of these costs and allow their AP process to function seamlessly while working fully remote.
Silicon Valley-based Inspyrus currently processes over 15 million invoices, representing more than $100B in AP spend, annually, while Regal Software provides its 350 corporate customers and partners with access to more than 160 different ERP systems.
“Mid-market companies of all sizes continue to show strong interest in automating their AP and payments processes, but as a market segment have been overlooked and underserved,” says MineralTree CEO, Micah Remley. “Our vision to revolutionize B2B commerce starts with making the invoice to payment processes simple, speedy, and secure for mid-market customers and our bank partners. This new funding, combined with expanded product capabilities and scale that come as a result of acquiring Inspyrus and Regal Software, uniquely positions MineralTree to do just that.”