Comma Raises $6M Seed Round - Bulk Payments Startup

Comma Secures £4.34 Million Seed Funding

U.K.-based open banking bulk payment platform, Comma, has successfully closed a £4.34 million (approximately $6 million) seed funding round. The investment was spearheaded by Octopus Ventures and Connect Ventures.

Additional participation in the round came from Village Global, alongside Peter Briffett and Portman Wills, the founders of Wagestream.

Streamlining Payments for Small Businesses

Comma’s core function is to facilitate bulk payments – including bills, salaries, and taxes – for small and micro businesses. The platform leverages existing business bank accounts, resulting in significant administrative time and cost savings.

Traditional methods like BACS can be difficult to acquire and expensive to maintain. Furthermore, virtual accounts introduce complexities related to KYC (Know Your Customer) compliance and bookkeeping.

The Rise of Outsourced Finance and Open Banking

The company observed a substantial increase in the outsourcing of financial operations during the pandemic. This trend coincided with the growing availability of open banking bulk payment APIs offered by major high street banks.

This confluence of factors enabled the development and subsequent rapid adoption of Comma’s innovative solution.

How the Comma App Works

The Comma application seamlessly integrates with popular accounting software such as Xero, QuickBooks, and Sage. This integration allows businesses, or their accountants, to efficiently manage and input supplier bank details without requiring direct bank access.

Businesses can process payments to between 15 and 50 recipients simultaneously. The system then automatically reconciles these payments against outstanding bills within the connected accounting system.

Founder’s Insight

Tom Beckenham, Comma’s founder, shared his experience: “Having served as COO, I directly experienced the cumbersome nature of managing international billing and payroll for numerous staff.”

He continued, “It became clear that while larger corporations benefit from dedicated corporate banking and payment systems, small businesses were often overlooked and lacked comparable solutions.”

Beckenham recognized that existing solutions for smaller businesses were often hampered by high initial costs, effectively excluding a large segment of the market.

Future Growth and Traction

Beckenham highlighted the opportunity presented by emerging open banking technologies to address the needs of this underserved market. He stated, “We’ve recently surpassed £1,000,000 in total payments processed.”

The company projects to achieve a processing volume of £1 million per week by the end of the current quarter.

Competitive Landscape

Within the U.K., Comma faces competition from companies like Credec, Telleroo, and traditional BACS bureaus such as ADP.

Internationally, Melio (based in the U.S.) represents the closest comparable service. Libeo, operating in France, also provides a similar offering.

• Key Competitors: Credec, Telleroo, ADP, Melio, Libeo