Detroit-based payment facilitator Autobooks announced recently that it has raised $25 million in Series B funding.
The funding round was led by MissionOG and included participation from Renaissance Venture Capital, Detroit Venture Partners and Draper Triangle, along with TD Bank Group, according to a press release.
Autobooks enables small businesses to send invoices and accept payments using their financial institutions’ online and mobile banking channels. The company works directly with banks and credit unions to help them more easily and profitably provide services targeted to small and micro businesses.
“The ability to receive payments online is vital for today’s small business,” Rob Metzger, general partner at MissionOG, said in the announcement.
“As we analyzed the market, we were impressed with Autobooks’ unique ability to successfully partner with financial institutions. These partnerships help redefine integrated receivables, bringing immediate and significant value to treasury and cash-management services and the small businesses who most need the help.”
“We understand business owners are busy and desire efficient solutions that provide them with more time to focus on what’s most important – the health and success of their business,” Chris Giamo, head of Commercial Bank, TD Bank, said.
“In 2020, we launched an integrated accounting and receivables platform, TD Online Accounting, in collaboration with Autobooks. We know that they share our philosophy of serving businesses, which is why we are pleased to continue working with Autobooks.”
The company plans to use the new capital to grow its operations in the U.S. and expand into international markets. It will also use the funds to develop new products, engage more with large banks, and expand its team.
Autobooks announced in January that it experienced record growth in 2020, adding 46 new banks to its customer base and growing total payment volume 279%.
“To be successful in the SMB market, you must be ruthlessly efficient,” Jeff Blackman, CFO at Autobooks, said at that time.
“Our payfac model embeds self-service merchant onboarding within internet banking, to provide a capital efficient way for financial institutions to acquire and engage business customers, both profitably and at scale.”