FreshBooks, a cloud accounting software provider, has raised US$80.75 million in series E funding.
The Canada-based company secured an additional US$50 million in debt financing, bringing its total valuation to more than US$1 billion.
Longtime FreshBooks investor Accomplice led the series E round, with participation from J.P. Morgan, Gaingels, BMO and Manulife. In addition, Barclays, an established FreshBooks platform partner in the UK, was added as a new investor.
Commenting on the new funding, Don Epperson, chief executive officer at FreshBooks, says: “The funding comes as an injection of confidence in our mission to digitally enable small businesses. We’re going to use this capital to reinforce our competitive differentiators. This includes investing in markets that are becoming more regulated, helping owners manage their finances through simplistic workflows, and prevailing as leaders in best-in-class support.”
“I’m proud to be backed by this longstanding group of investors who believe in what we do and want to advance our next stages of success.”
FreshBooks plans to use the funding for sales and marketing, research and development, and strategic acquisitions, as the company takes advantage of more business owners becoming digitally enabled to meet local tax and invoice compliance systems.
The company says its cloud accounting software will subsequently reach more customers in more countries worldwide with its easy-to-use features and locally relevant integrations.
Kester Keating, head of US principal investments at Barclays, comments: “We’re pleased to support the FreshBooks team with this equity investment as they scale into new markets. Through this investment and Barclaycard Payments’ ongoing commercial partnership with FreshBooks, we are supporting our clients to embrace this change, as software continues to have a profound impact on businesses of every size.”
Jeff Fagnan, founder and managing partner at Accomplice, adds: “As repeat investors, we’re more confident than ever to back FreshBooks once again and lead this round. The need to support self-employed professionals with tools and solutions has never been greater, and no company understands and delivers the way the team at FreshBooks does.”
FreshBooks, which launched in 2003, says it has helped more than 30 million people in over 160 countries as an accounting software provider for small businesses and self-employed professionals.
This funding round serves as the latest milestone for FreshBooks. In September 2020, it acquired Mexican e-invoicing company Facturama to expand its audience in Spanish-speaking markets.
Andre Salvi, head of technology and innovation banking group at BMO Bank of Montreal, says: “With FreshBooks’ ambition to help small businesses on their digital journey, there is incredible potential for this organisation to capture the market. We look forward to continuing to grow our relationship with the FreshBooks team as they innovate the platform and expand internationally through strategic acquisitions.”