B2B fintech Rupifi raises $25 mn led by Bessemer Venture Partners and Tiger Global

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Rupifi, a business-to-business (B2B) payments fintech, has raised $25 million in its Series A round led by Bessemer Venture Partners and Tiger Global.

Existing Investors Quona Capital and Ankur Capital also participated in this round, along with Better Capital, the company said.

Rupifi was founded in 2020 by IIT Indore alumnus and former head of Small and Medium Enterprises (SME) lending at Razorpay Anubhav Jain and IIT Kharagpur alumni Ankit Singh and Jawaid Iqbal. The company provides Buy Now Pay Later (BNPL) and commercial card products for SMEs.

The startup is also backed by Cloud Capital and angel investors including Flipkart co-founder Binny Bansal, Doordash's Gokul Rajaram, Cred founder Kunal Shah, Livspace co-founder Ramakant Sharma, BharatPe co-founder Ashneer Grover and MyAsiaVC's Sajid Rehman.

Jain who is the co-Founder and CEO of Rupifi said, “With this current investment from Bessemer Venture Partners and Tiger Global, we plan to build further towards our goal of disrupting B2B payments and transactions."

BNPL and credit products for consumers have already become popular among Indians, now BNPL product offerings for SMEs are also growing in number. Razorpay's neobanking platform RazorpayX focuses on SMEs and has a lending product, and startup KredX too recently entered the SME BNPL space.

Rupifi is offering B2B BNPL across sectors such as FMCG, pharma, fashion, electronics, agriculture and food. The startup said that it has recorded 50 percent month-on-month growth in disbursals in the last 12 months while covering more than 50,000 SMEs.

Rupifi also claims that its portfolio is healthy with very low levels of non-performing assets (NPAs).

"Our SME-focused Commercial Card provides SMEs flexibility to manage expenses without any cost for shorter periods. With the recent round of funding, we are now moving towards building the complete B2B checkout product for marketplaces and omnichannel mobile-first B2B payments solutions for merchants, distributors and sellers,” Jain added.

The company is working with marketplaces such as Flipkart Wholesale, Retailio and Fynd among others.

Talking about their investment in Rupifi, Vishal Gupta, Managing Director of Bessemer Venture Partners said, “B2B payments and credit are large problems with technology being the future to solve these and Rupifi team is building around that keeping the SMEs at the core”.

It aims to solve issues that SMEs face across different steps of their transaction life cycle, including invoicing, payment reconciliation, taxation and accounting.

For this, Rupifi aims to bolster its product suite to create fully digital, integrated and real-time solutions which meet the end-to-end B2B transactions and payments requirements of SMEs. It will continue to leverage analytics and data-based insights, which will form the backbone for improving credit-decisioning and SME experience, the company said.

John Curtius, Partner at Tiger Global said, "We have had the experience of working with more than hundred B2B and SaaS founders. We understand that globally B2B Payments are broken and largely manual. In the $1 trillion B2B commerce and payments space in India, Rupifi has demonstrated rapid growth."