Bill.com, a cloud-based payments platform for U.S. businesses, announced today that it has raised an additional $100 million to digitize payments. JP Morgan Chase and Temasek co-led the round, with participation from returning investors August Capital, Scale Ventures, Napier Park, DCM, Icon Ventures, and Emergence Capital.
Founded in 2006, the Palo Alto, California-based startup works with businesses, accounting firms, and banks to reduce the time spent on financial back-office operations.
According to Bill.com founder and CEO René Lacerte, many more solutions have been rolled out for consumers in the digital payments space. “They can choose from Apple Pay, PayPal, and many others to make payments digitally,” he said in an interview with VentureBeat. “Businesses, however, are more complex, and the payments system hasn’t evolved much since the 19th century.”
For now, Bill.com claims to serve about 1 percent of U.S. businesses that are employers, which amounts to about 100,000 customers. When asked why the adoption of digital payments is taking so long, Lacerte stressed that there is a reassuring element to the manual process, as businesses feel like they understand the payments before committing to them.
Prior to founding Bill.com, Lacerte founded online payroll services provider PayCycle, which he sold to Intuit in 2009.
Businesses use Bill.com to pay their bills but also to pay independent contractors who are not employees. Users can log on to Bill.com or use the app, which is available on both iOS and Android. A dashboard indicates which bills have been received, approved, and paid, and also highlights any payments that are overdue.
Bill.com charges customers a monthly subscription fee for its software-as-a-service (SaaS) offering, which ranges between $29 and $100. The startup also monetizes through transaction fees. Customers include Mozilla, Merchant e-Solutions, Tapingo, Gigya, and Highfive.
Partnerships with accounting firms and banks have also enabled Bill.com to expand its network of 2.5 million users. The startup recently announced a partnership with JP Morgan Chase — the bank will be white-labelling Bill.com’s product as a B2B payments solution, which will be rolled out next year.
Other startups competing in the online payments space include Intuit QuickBooks and Viewpost.
To date, Bill.com has raised approximately $200 million. It will use the new money to further develop its platform, increase its sales and marketing efforts, and grow its team of 250.
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