It’s no secret that the technology for easy business-to-business payments has yet to catch up with its peer-to-peer counterparts, but Yaydoo you think you have the answer.
The Mexico City-based B2B software and payments company offers three products, VendorPlace, P-Card and By Load, to manage cash flow, optimize access to smart liquidity and connect small, medium and large companies to an ecosystem of digital tools.
Sergio Almaguer, Guillermo Treviño and Roberto Flores founded Yaydoo – the name combines “yay” and “do” to show the happiness of doing something – in 2017. Today, the company announced the closing of a $ 20.4 Series A round. million co-led by Base10 Partners and monashees.
They were joined in the round by SoftBank’s Latin America Fund and Leap Global Partners. In total, Yaydoo has raised $ 21.5 million, Almaguer told TechCrunch.
Before starting the company, Almaguer was working in another company in Mexico doing a point of sale. His large business clients wanted their payments to be automated, but he found the same tools too expensive for small businesses.
The co-founders started Yaydoo to provide acquisitions, accounts payable, and accounts receivable, but in a simpler format to make collecting and paying for B2B transactions affordable for small businesses.
The idea is taking off and suppliers are adding their own clients so that everyone is part of the network to better link invoices with purchase orders and then connect to accounts payable, Almaguer said. Yaydoo estimates that automation workflows reduced 80% of wasted time paying vendors, on average.
Yaydoo joins a heating up fintech sector: the The global B2B payments market is valued at $ 120 trillion annually.. Last week, B2B payments platform Nium announced a $ 200 million in Series D financing at a valuation of $ 1 billion. Others that recently attracted funds include Paystand, which raised $ 50 million in Series C financing to make cashless B2B payments, while Dwolla raised $ 21 million for its API that allows companies to build and facilitate fast payments.
The new financing will allow the company to attract new hires in Mexico and when the company expands to other Latin American countries. Yaydoo is also looking for future opportunities for its working capital business, such as understanding how many invoices customers are setting up, access to actual payments, and how money is flowing out and in so that it can provide insight into financing gaps from the working capital. The company will also invest in product development.
The company has grown to more than 800 clients, up from 200 in the first quarter of 2020. Its workforce also grew to 100 from 30 during the same time. In the last 12 months, more than 70,000 businesses have transacted on the Yaydoo network and the total volume of payments grew to hundreds of millions of dollars.
Yaydoo is a SaaS subscription model, but the new financing will also allow the company to create a pool of potential clients with a “freemium” offering with the aim of converting those clients to the subscription model as they grow, Almaguer said.
Rexhi Dollaku, a partner at Base10 Partners, said the company saw the way B2B payments were being modernized and was “impressed” by the Yaydoo team and how they built a complicated infrastructure, but made it easy to use.
He believes Latin America is 10 years behind in terms of B2B payments, but will catch up sooner rather than later due to the digital transformation taking place in the region.
“We are starting to see early signs that the network is building on the payment product, and that is a good indication,” said Dollaku. “With the funding, Yaydoo will also be able to offer more financial service options for companies to address a working funding gap.”