Payable announced a new $6-million seed round on Tuesday.
The company is a platform designed to streamline payment operations and automate business ops.
The round was co-led by CRV and Earlybird Venture Capital, with participation from Conversion Capital and Clocktower Ventures.
Co-founders Daniel Yubi and Raz Musca said they built Payable as a marketplace solution while at Checkout.
“It is one of those problems you don’t notice until you work directly with the finance operations team and see their challenges firsthand,” Yubi said.
“We watched them use a spreadsheet with one hand to count payments and cash with a bank file, on the other hand, to send money to their customers manually. It was both inefficient and antiquated. Once we saw the problem, we knew there had to be a better way and became determined to create it.”
There were angel investors, including Francesco Simoneschi, CEO of TrueLayer; Hristo Borisov, CEO of Payhawk, Nik Milanovic founder of the fintech fund; Bitpanda founders, Dileep Thazhmon, CEO of Jeeves; and many other founders and operators in the space.
Payment reconciliation
Payable solves payment reconciliation for companies with data-matching products and integrates with corporate bank accounts. The firm said it provides an API and dashboard that enables marketplaces, lenders, and fintechs to manage money movement from a single interface.
Companies must deal with bank files such as EBICS and spreadsheets and use engineering and finance professionals to understand why payments happen. This becomes increasingly difficult as companies scale.
“Today, it is easy to accept payments, but to understand where money is, it is quite difficult,” Yubi said. “The vision we have for Payable is that any product manager in a company is empowered to launch a new fintech product, a product that ‘moves money” without freaking out their finance team.”
Building payments operations software requires unique technical expertise in payments, banking, and finance. While some companies are starting to appear in the payments space, Payable distinguished itself with a great founding team/market fit in this new emerging category, the firm said.
Seed round means confidence from Investors.
James Green, a partner at CRV, said they have confidence in the Payable team.
“What excited us most about investing in Payable is that Daniel understands the core problem fintechs struggle with and has created a platform that can automate the entire payment lifecycle,” Green said. “We have tremendous confidence in their ability to deliver on their mission as they have assembled a team with similar backgrounds coming from companies such as Curve, TrueLayer, 11FS, and Stripe.”
Tim Rehder, Partner at Earlybird, said after knowing the team for a while,
“As we got to know Daniel and his team over time, it became clear to us that the founders have lived the pain point and possess the domain knowledge to build the best product to solve for it,” Rehder said. “The team’s vision redefines the possibilities enabled by automating money movement.”
