FinTech OatFi Raises $24 Million for B2B Embedded Financing Platform
OatFi said it has raised $24 million in a Series A round to build a B2B credit network.
The round was led by White Star Capital, OatFi said in a Tuesday (June 3) news release.
Highlighting its use of application programming interfaces (APIs), OatFi said it embeds its underwriting, origination and funding capabilities into B2B payment platforms within their accounts payable (AP), accounts receivable (AR) and commercial charge card workflows, enabling these platforms “to facilitate B2B transactions with built-in financing at the point where it’s needed most.”
The FinTech noted in the release that it has partnered with infrastructure companies like Unit, Transcard and Galileo as partners, and has integrated with over 25 platforms in the past three years.
“With this funding, OatFi will accelerate product development and integrations across AP, AR and payments infrastructure providers — advancing its mission to build the modern credit network powering the $35 trillion in annual US B2B payments,” the company said in the release.
More businesses are looking to platforms to meet their working capital needs, PYMNTS reported in May.
The latest earnings season had companies like Block, Shopify and PayPal reporting that more merchants were utilizing their services to access capital in an uncertain environment in order to buy inventory and cover other operating costs.
Alex Chriss, president and CEO of PayPal, told analysts: “We know that cash flow is the most critical part for small businesses,” and though when it comes to tariffs, “we haven’t seen a big impact yet … as they think about money in, money out and access to capital, we know that we have tremendous strength when it comes to providing capital to our small business customers, and we think we can be a place for them to come in times of need.”
This is backed by findings from PYMNTS Intelligence, which discovered that smaller firms without access to financing were much less confident in their ability to adapt to a volatile economic environment. These companies are 75% more likely to have no plan to offset any costs arising from the implementation of tariffs.
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