Routable announced today that it has received $30 million in Series B funding. The financing round was led by the Altman brothers. Jack Altman and Sam Altman, former CEO of Y-Combinator, a Silicon Valley incubator that spawned tech giants like Stripe and Airbnb, participated in the round. Instead of VC funding, this round included angel investors like Joe Gebbia, co-founder of Airbnb, and Max Mullen, co-founder of Instacart. Routable was founded in 2017 and has already raised a whopping $46 million in multiple funding rounds.
Optimisation of corporate payments
Business-to-business, or B2B, commerce is a huge payments processing market, estimated at $120 trillion annually worldwide. Routable, founded by CEO Omri Mohr and CTO Tom Harel, specializes in developing a platform for large transactional companies. Their platform aims to automate the process of settling customer debts and receivables, allowing these companies to save time and focus their energy on other areas. Integration of the Routable platform with the customer’s existing system is seamless, as this is the first time the company has used APIs to enable seamless integration with Xero, QuickBooks and NetSuite products. Over the next 18 months, the company plans to continue this work and complete additional integrations with Workday, Oracle and Microsoft Dynamics. The goal of this integration is to reduce the pain points in creating payment systems, which Mohr and Harel have heard a lot about in recent years.
Inventory of needs among creators, gig economy
In the current context, the trend is that more and more people are participating in the maker economy and the giant economy. Businesses may be dealing with hundreds of contractors or employees at a time, and the lack of automated payment processing can result in a huge amount of time wasted manually entering information and ensuring that payments are made in a timely manner. Supporting these creators and workers is one of the many areas Routable has focused on over the past year. This frictionless approach is one of many that fintech companies have in mind when developing their own payment platforms.
Rapid growth in demand
Since leaving the stealth club in August 2020, the company has experienced impressive growth. The market-ready product allowed the company to increase its sales by 380% in less than a year. The Routable platform is now used by major corporate clients including Snackpass, Ticketmaster and Re-Max. In the future, the company hopes to continue to focus on the business market. The platform was initially aimed at small and medium enterprises, but demand from large corporations has led to a change in strategy. CEO Mohr said the money raised will be used to hire additional employees for various positions.