Affirm Spinout Resolve Raises $25M to Expand B2B BNPL

Resolve Secures $25 Million in Equity Funding for B2B “Buy Now, Pay Later” Solutions

Resolve, a company specializing in buy now, pay later (BNPL) solutions tailored for business-to-business (B2B) transactions, has announced a successful $25 million equity funding round.

Recent Funding and Investors

This latest investment follows a prior financing round completed several months ago, which combined asset and equity funding totaling $60 million – with the majority being asset-based, or debt. Insight Partners spearheaded the current round, with further participation from existing investors including Initialized Capital, KSD Capital, Haystack VC, Commerce Ventures, and Clocktower Ventures.

Growth and Demand Since Launch

Since its inception as a spin-off from Affirm in 2019, Resolve reports experiencing substantial demand for its B2B BNPL billing service designed for business purchases. The company has observed “overwhelming” interest in its offerings.

Focus on B2B Transactions

Unlike Affirm, which primarily serves the consumer market, Resolve concentrates exclusively on business-to-business billing. It streamlines the billing and credit purchasing process through automation. The company facilitates digital deferment of payments and offers improved terms compared to traditional methods, leveraging an automated underwriting system.

Benefits for Buyers and Merchants

Resolve asserts its ability to provide extended payment terms to buyers without incurring interest or fees, provided accounts are settled within the agreed-upon timeframe. Simultaneously, merchants receive immediate payment (less any applicable fees) upon order placement.

Improved cash flow is a key benefit, as faster invoice payments are enabled through this system.

Market Trends and Supply Chain Impact

“The demand for simplified net term payments and embedded BNPL options is rapidly increasing,” stated Chris Tsai, CEO and co-founder of Resolve. “Companies are actively seeking solutions to mitigate payment difficulties stemming from extended and disrupted supply chains.”

Adoption by Small Businesses

The startup has noted a growing trend of small business service providers adopting BNPL as a lower-risk method for offering net terms to customers who anticipate delayed payments.

“Net Terms-as-a-Service”

Resolve aims to simplify and seamlessly integrate net terms. Traditionally, Tsai explained, B2B marketplaces, manufacturers, or distributors offering customers 30, 60, or 90-day payment terms faced the complexities of functioning like a bank. This included credit checks, onboarding procedures, and accounting reconciliation.

“This process was time-consuming and costly,” Tsai shared with TechCrunch. “We provide ‘net terms-as-a-service,’ enabling companies to offer professional net terms their customers expect, without the associated burdens or risks.” The company ensures merchants receive upfront payment while managing the entire end-to-end process.

Competitive Advantages

According to Tsai, Resolve differentiates itself by both simplifying net terms and making credit readily embeddable within any B2B payment acceptance point. Its compatibility with existing ERP and accounting systems is a significant draw for many businesses.

Insight Partners’ Perspective

Rebecca Liu-Doyle, principal at Insight Partners, highlighted Resolve’s use of automation and a user-friendly digital experience to address a long-standing challenge: businesses’ access to working capital.

“The company’s innovative product delivers a mutually beneficial outcome for B2B buyers and sellers, mirroring the transformative impact of BNPL solutions in the consumer space,” she stated. “We believe the B2B BNPL market remains largely untapped, and early leaders like Resolve are strategically positioned for success.”