[Funding alert] FloBiz raises $31M in Series B round led by Sequoia Capital India

FloBiz, a neobank startup focused on the SMB segment, has raised $31 million in a Series B round led by Sequoia Capital India and Think Investments, with participation from existing investors Elevation Capital and Beenext.

This funding round also saw participation from leading angel investors such as Paytm's Vijay Shekhar Sharma, CRED's Kunal Shah, Jupiter's Jiten Gupta, Pine Labs' Amrish Rau, HalloApp's Neeraj Arora, Uni Cards' Nitin Gupta, Bizongo's Ankit Tomar, PaySense's Sayali Karanjkar, and BukuKas' Krishnan Menon, along with 9Unicorns and Whiteboard Capital.

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FloBiz will deploy this capital for team expansion, product development, and scaling distribution. It is also planning to build additional technical capabilities as it prepares to venture into financial services soon.

Founded in 2019 by Rahul Raj, Aditya Naik, and Rakesh Yadav, FloBiz launched its flagship product — myBillBook, a GST billing and accounting software, in January 2020 to help SMB owners digitise invoicing, streamline business accounting, and automate workflows of their enterprises.

According to FloBiz, with over a million monthly active users, SMBs now record over $1 billion worth of transactions on myBillBook app every month. It is currently available in English, Hindi, Gujarati, and Tamil, with plans to add another five more regional languages within the next six months.

On the funding received, FloBiz Co-founder and CEO Rahul Raj said, “This raise will help us accelerate projects which have been in the works up till now — 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 partners in the next 12 months.”

FloBiz will also be making deeper use of technologies such as AI and image processing to simplify the onboarding process for the less tech-savvy SMB owners in Tier II and III cities of India.

“Small businesses are the real heroes of our economy. In order to power the SMB economy with technology, one needs deep understanding, instinct and empathy for this audience. We are really impressed by the user-centricity, product focus, and experimentative approach of the FloBiz founders,” said Tejeshwi Sharma, Managing Director, Sequoia Capital India.

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