Plooto closes USD 20 mln Series B funding


Plooto , an accounts payable (AP) and accounts receivable (AR) automation software for small to medium-sized businesses (SMBs), has closed a USD 20 million in Series B funding

Plooto , an accounts payable (AP) and accounts receivable (AR) automation software for small to medium-sized businesses (SMBs), has closed a USD 20 million in Series B funding. The all-equity round was led by Centana Growth Partners, a specialised growth equity firm that invests in the future of finance, with participation from existing investors FINTOP Capital and Luge Capital.

The funding will be used to drive customer expansion, introduce new product lines, ramp up hiring and help Plooto customise its offering for more businesses, accounting, and bookkeeping firms. Plooto previously raised USD 6. 34 million Series A in early 2021 led by FINTOP Capital with participation from Luge Capital and Inovia Capital.

In 2015, Plooto began by building a payments platform for small businesses to achieve greater control, convenience, and visibility over their financial practices at a reasonable price point. Today, over 8500 finance teams as well as accountants and bookkeepers use Plooto’s cloud-based financial solutions. Turbocharged by the adoption of remote-first work, Plooto continues to grow at a rapid pace.

Cashflow management Small businesses in Canada employ 10. 3 million people and contribute to 40% of the gross domestic product (GDP). In the US, small businesses employ over 61 million people and contribute to 43.

5% of the GDP. At the same time, poor cashflow management is the largest cause of failure for small businesses. Less than one in five survive their 10-year anniversary.

 At the same time, poor cashflow management is the largest cause of failure for small businesses. Less than one in five survive their 10-year anniversary. 52% of business to business (B2B) payments are still done by bank transfer which means that most small businesses rely on their customers to manually make payments within the agreed payment terms.

Lengthy payment periods make SMEs wait a long time to get the financial return of their work. While they wait for customers to pay, unseen bumps in the road can drain the cash reserves. Accounts Payable vs.

Accounts Receivable Accounts receivable is the category on a company's balance sheet or income statement that lists all unpaid balances owed by customers to the company. Accounts receivable accounts serve two functions in financial statements. They are income accounts that show the company's income or money that is about to be paid to the company.

They also have checking accounts that represent a portion of the company's net working capital. The accounts payable ledger on the balance sheet describes upcoming transactions for which the company needs to make payments to outside parties. Trade payables are accounts payable – they represent cash that is leaving the company, reducing the company's net worth on the balance sheet.

The accounts receivable and accounts payable processes have a lot in common. The main difference is that accounts receivable describes the money that is expected to flow into the company while accounts payable describes the money that is about to leave the company. .


Dec 14, 2022 12:47
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