Nium crosses $1B valuation with $200M Riverwood Capital-led round – ClearTips

Business-to-business payments platform Nium announced Monday that it has raised more than $200 million in Series D funding and has seen a valuation above $1 billion.

The company, now based in Singapore but relocating to the Gulf region, made the investment as “the first B2B payments unicorn from Southeast Asia”.

Riverwood Capital led the round, which was attended by Temasek, Visa, Vertex Ventures, Etinum Capital, Beacon Venture Capital and Rocket Capital Investments, along with angel investors such as Gokul Rajaram of DoorDash, Vicky Bindra of FIS and Arjun Sethi of Tribe Capital. A group of Including the new funding, Nium has raised $300 million so far, co-founder and CEO, Prajit Nanu, told ClearTips.

According to some experts, the B2B payments sector is already hot, yet its penetration is low. Nanu said that to get an idea of ​​how hot that is, Nium was seeking $150 million for its Series D round, received a $300 million commitment from eager investors and settled on $200 million.

“This is our fourth or fifth fundraising, but we’ve never had this kind of interest before — we even had our term sheets in five days,” he said. “I believe this interest is because we have successfully managed to build a global platform that is heavily regulated, which gives us access to a lot of networks. This is an environment where payments are visible. , and our core is to empower frictionless commerce and enable anyone to use our platform.”

The new round of Nium adds fuel to the fire shared by many companies, going after the global B2B payments market, which is valued at $120 trillion annually: Last week, Paystand raised Series C funding to make B2B payments cashless. raised $50 million, while Dwolla raised $21 million. For its API that allows companies to create and facilitate payments faster. In March, Higo brought in $3.3 million to do the same in Latin America, while developing Balance, a B2B payments platform that allows merchants to offer a variety of payment methods. Raised $5.5 million in February.

Nium’s vision is to provide access to a global payment infrastructure, including card issuance, accounts receivable and payable, and banking-as-a-service through a single API. The company’s network enables customers to send money in more than 100 countries, make payments in more than 60 currencies, accept money in seven currencies, and issue cards in more than 40 countries, Nanu said. The company also boasts money transfer, card issuance and banking licenses in 11 jurisdictions.

Francisco Alvarez-Demalde, co-founding partner and managing partner of Riverwood, said in an email that the combination of software – plus regulatory licenses – and the operation of a fintech infrastructure platform on behalf of Neobank and corporates is a global trend that is experiencing hyper-growth Still working.

Riverwood followed Nium for many years, and its future outlook got the firm interested in being part of this round. Alvarez-Demalde stated that “Rule has a great market opportunity, an incredible combination of a talented founder and team, and we believe the company is poised for global growth based on the underlying secular technology trends.” The time is ready for increased payment capabilities and the spread of cross-border commerce.

“As an API centralized payment infrastructure, Nium is a catalyst that enables local market licenses, cross-border payments with a network of partners and banking relationships, local accounts and card issuance to facilitate money transfers around the world unlocks it.” “Enterprises of all kinds are embedding financial services as part of their consumer experience, and Nium is a major global enabler of this trend.”

Nanu said the new funding would enable the company to move to the United States, which accounts for 3% of Nium’s revenue. He wants to increase this to 20% over the next 18 months, as well as expand it to Latin America. The investment also gives the company a runway of 12 to 18 months for further M&A activity. In June, Nium acquired virtual card issuer Ixaris, and in July acquired Wirecard Forex India to showcase it in the India market. He also plans to expand the company’s payment network infrastructure, invest in product development, and add to Nium’s 700-person headcount.

Nium already counts hundreds of enterprise companies as customers and plans to add thousands more in the next year. The company processes payments of $8 billion annually and has issued over 30 million virtual cards since 2015. Meanwhile, revenue grew more than 280% year over year.

All this growth puts the company on a trajectory for an initial public offering, Nanu said. He has already spoken to the people who will help the company formally begin that journey in the first quarter of 2022.

“Unlike other companies that raise money for new products, we want to expand on our existing set of what we do,” Nanu said. “The US is a new market, but we have a great brand and will use the new era to provide a better customer experience.”

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