Flexio, a platform revolutionizing business-to-business (B2B) payments in Latin America, announced that it has raised a $3 million Seed Round led by Costanoa Ventures with participation from Soma Capital, Latitud Fund, Omri Mor, Daniel Kahn, Diego Oppenheimer, as well as several notable LatAm founders and Y Combinator alumni. In 2014, the Mexican government passed a law requiring all B2B payments to be digitally documented to increase tax payments, a regulation that has since spread across Latin America. According to the World Bank, last year, B2B electronic payments totaled $180B in transactions in 2020 in Mexico alone. Today, it is a very manual and error-prone process that makes compliance especially challenging for small and medium-sized businesses (SMBs), which typically receive bills, contracts, and other documents in a variety of often unorganized ways, that may not have the staff or systems to manage data entry and approvals across multiple communications channels. These challenges also lead to a lack of visibility into cash flow given nothing is centralized in one place, and accurate, real-time information isn’t available.
Flexio automates accounts receivable (AR) and accounts payable (AP) for SMBs, taking care of pay-ins, payouts, communication, and integrations with enterprise resource planning systems (ERPs) and accounting software. With Flexio, customers can cut the time they spend on AR/AP by as much as 70%. SMBs businesses represent 70% of the region’s GDP and employ approximately 60%-70% of the region’s workforce. Flexio’s current customers include Impactum, Casa Fronda, and Grupo Promesa. Flexio will use the funding to accelerate product production to help businesses automate bill payments and invoicing.