FloBiz, a neobank focused on small and medium businesses, on Monday said it has raised $31 million (Rs 227 crore) as part of its Series B funding round.
The funding was led by new investors Sequoia Capital India and Think Investments as well as existing investors Elevation Capital and Beenext, said FloBiz in a statement.
Founders and executives of startups also participated in this round including Vijay Shekhar Sharma (Paytm), Kunal Shah (CRED), Jiten Gupta (Jupiter), Amrish Rau (Pine Labs), Neeraj Arora (HalloApp), Nitin Gupta (Uni Cards), Ankit Tomar (Bizongo), Sayali Karanjkar (PaySense) and Krishnan Menon (BukuKas).
9Unicorns and Whiteboard Capital also contributed to the round.
The startup will use the fresh capital for product development, team expansion and to boost its distribution.
The new round comes after FloBiz raised $10 million (around Rs 72.5 crore) in a Series A funding round led by Elevation Capital in March.
Prior to this, the startup had raised $3 million in a seed round in 2019.
FloBiz, operated by Metaloop Innovation Labs Pvt Ltd, was set up by CEO Rahul Raj. Its offerings include flagship product myBillBook, which operates as a billing and accounting app with WhatsApp integration as well as multi-lingual support.
The myBillBook app currently has a strong presence in Maharashtra, Delhi-NCR, Uttar Pradesh, Gujarat and Tamil Nadu, which account for more than half of its total user base.
The company will continue to strengthen its presence in these regions and also focus on growth in states such as Bihar, Rajasthan, Karnataka and West Bengal.
“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," noted Tejeshwi Sharma, managing director of Sequoia Capital India.
Sharma explained that FloBiz's user-centricity, product focus and experimentative approach drove the venture capital firm's investment in the company.
Sequoia Capital is the most active investor in India. The venture capital firm struck 47 deals (both new and follow-on bets) between January and June this year, according to data intelligence platform VCCEdge.
New startups added by Sequoia Capital this year include online beauty products marketplace Purplle, crypto platform CoinSwitch Kuber, and construction site management app Powerplay.