Plooto, a financial operations platform, has raised US$20m (C$27m) in series B funding in an all-equity round.
The funding will be used to drive customer expansion, introduce new product lines, increase hires and customise its offering for more businesses and accounting and bookkeeping firms.
The Toronto, Canada-headquartered fintech previously raised US$6.34m (C$8m) in a series A round last year led by FINTOP Capital, with participation from Luge Capital and Inovia Capital.
Centana Growth Partners led the latest round, with participation from existing investors FINTOP Capital and Luge Capital.
Hamed Abbasi, chief executive officer and co-founder of Plooto, commented: “Our vision, since inception, has been to enable the advancement of entrepreneurs to reach their full potential without being bogged down by cumbersome and inefficient financial processes.
“By expanding our platform’s automation, workflows and payment capabilities, Plooto has become the mission control for managing cashflow end-to-end.”
The small businesses in Canada that that Plooto targets with its platform for automating and managing accounts payable and receivable employ 10.3m people and contribute to 40% of the gross domestic product, according to the fintech.
Similarly, in the US, small businesses employ more than 61 million people and contribute to 43.5% of the GDP.
But due to poor cashflow, which Plooto aims to improve, less than one in five small business last 10 years.
A similar trend is seen in the UK. At the start of the year, the FSB predicted around 440,000 small businesses in the UK could go bust due to late payments and rising costs.
Serguei Kloubkov, chief technology officer and co-founder of Plooto, said: “Beyond their economic contributions, entrepreneurs and SMBs, in general, have largely shaped our modern world and our mission is to see more of them succeed.”