FinTech startup strengthens balance sheet to disrupt underserved credit and collections space
Financial technology startup YayPay announced the raising of $8.4 million dollars in funding to further its drive to bring automation to the back-office finance operations of mid-sized enterprises. YayPay will capitalize on its momentum in the multibillion-dollar credit-to-cash software and commercial payments market, and use the funding to pursue product development in data science, advanced-level product features, and sales team expansion. The funding is led by Information Venture Partners with follow on investment from existing shareholders including Birchmere, QED, Fifth Third Capital, the direct equity investment subsidiary of Fifth Third Bancorp, Gaingels, and 500 Fintech Fund. A new supporting institutional investor, Runway Venture Partners, also joined the round. The company’s total funding to date is $14 million dollars.
“YayPay is turning finance teams into revenue heroes by giving our customers the workflow tools that finally match the robustness of those used by their sales and marketing counterparts,” says Anthony Venus, cofounder and CEO of YayPay. “Using modern software, powered by data science and machine learning, we are helping finance and accounts receivables teams to hit their monthly credit and collections goals while driving costs lower. We are developing predictive credit models and building a credit-to-cash workflow specifically designed for the modern accounts receivables team.”
YayPay’s powerful back-office SaaS uses machine learning algorithms that analyze transactional and behavioral patterns to help accounts receivables operations accelerate collections, boost finance team productivity, manage customer risk, and predict cash flow with greater accuracy. Over the last 12 months, YayPay has grown its user base by over 500% to 480 users, and increased total accounts receivables on the platform to more than $7 billion dollars.
“We are excited to be working with Anthony and the team,” said Robert Antoniades, Co-Founder and General Partner at Information Venture Partners. “YayPay is directly in line with our investment thesis regarding automation and the digitization of finance. Using a FinTech solution to solve an analogue yet critical process such as collections is the lifeblood of any business. We believe that the YayPay platform is best in market.”
YayPay is an alumnus of the FinTech Innovation Lab, an accelerator for growth stage companies that have developed cutting edge technology to be mentored by leading entrepreneurs and executives from New York’s top financial services companies. The FinTech Innovation Lab was co-founded by the Partnership Fund for New York City and Accenture.