Crunchbase Exclusive: Plooto Banks C$8M Series A For Small Business Payments Automation
Plooto is very excited today to announce the closing of our $8 million Series A financing. The investment will support Plooto’s plans to further enhance its cash flow management capabilities for SMBs across North America.
FINTOP Capital, formed by FinTech veterans including the co-founders of Square Inc. and S1 Corp, led the round. Luge Capital, a Toronto-based FinTech VC, and Inovia Capital, one of Canada’s largest VC firms, also participated in the round. Mr. John Philpott, General Partner at FINTOP Capital, will join Plooto’s Board of Directors. Mr. Karim Gillani, former Xoom, and PayPal executive, and current GP at Luge Capital, will serve as an advisor to the company.
“At Plooto, we are building the foundational tools SMBs need every day to manage their financial operations better. Poor cash flow is responsible for approximately 82% of SMBs failing and COVID has significantly accelerated this trend,” says Hamed Abbasi, Co-Founder and CEO of Plooto. “Payments are the most critical yet completely chaotic component of cash-flow management since a vast majority of businesses still rely on paper-based and antiqued methods of transacting with one another. Plooto is on a mission to change that and with this funding, we’ll be able to serve a much larger number of companies across North America. We chose to partner with FINTOP, Luge, and Inovia because we all share a single belief that a world where more businesses succeed, is a better world to live in.”
Plooto enables businesses to automate their domestic and international accounts payable (AP) and accounts receivable (AR) functions by offering a single platform that unifies payments, processes, control, and reporting. The platform also integrates with popular accounting systems such as QuickBooks and Xero to eliminate data entry and automate the reconciliation of bills and invoices.
“Plooto has identified an opportunity to help businesses manage their finances and improve their cash flow in the easiest and most affordable way,” says John Philpott, General Partner at FINTOP Capital. “The team is passionate about solving a real-world problem that exists for every company, and that is why we are very excited about this partnership with Plooto.”
“There are approximately $120 trillion in payments that move between businesses globally each year. In a world where companies shift away from paper-based processes to digital workflows, Plooto is at the center, giving SMBs more visibility into their fluctuating cash position,” says Karim Gillani, General Partner at Luge Capital. “We backed Hamed and his team because they are relentless about serving their customers.”