Nium Reaches $1 Billion Valuation with $200M Funding

Nium Secures $200 Million in Series D Funding, Achieving Unicorn Status

Nium, a platform specializing in business-to-business payments, recently announced the successful completion of a Series D funding round, exceeding $200 million. This investment has propelled the company’s valuation to over $1 billion.

Southeast Asia's First B2B Payments Unicorn

The company, currently headquartered in Singapore but transitioning operations to the Bay Area, highlighted this funding as a landmark achievement. It marks Nium as the first B2B payments company from Southeast Asia to attain unicorn status.

Investment Details and Participants

Riverwood Capital spearheaded the investment round. Significant participation also came from Temasek, Visa, Vertex Ventures, Atinum Capital, Beacon Venture Capital, and Rocket Capital Investment. A cohort of angel investors, including Gokul Rajaram of DoorDash, Vicky Bindra from FIS, and Arjun Sethi of Tribe Capital, also contributed.

To date, Nium has secured a total of $300 million in funding, as confirmed by Prajit Nanu, the co-founder and CEO, in a statement to TechCrunch.

A Thriving, Yet Underserved Market

The B2B payments landscape is experiencing rapid growth, yet remains relatively underdeveloped according to industry analysts. Nium initially targeted a $150 million Series D raise, but received commitments totaling $300 million, ultimately settling on $200 million, Nanu explained.

Rapid Investor Interest

“We’ve never encountered this level of investor enthusiasm before,” Nanu stated. “Our term sheets were finalized within just five days.” He attributes this heightened interest to the company’s success in building a globally compliant platform, granting access to extensive networks.

“We are operating in an environment where payment transparency is paramount, and our core technology facilitates seamless commerce, empowering anyone to utilize our platform,” he added.

Competition in the B2B Payments Space

Nium’s funding arrives amidst increasing investment in the global B2B payments market, currently valued at $120 trillion annually. Paystand recently secured $50 million in Series C funding to promote cashless B2B transactions. Dwolla raised $21 million to support its API for streamlined payments.

Furthermore, Higo secured $3.3 million to expand its services in Latin America, and Balance, a B2B payments platform offering diverse payment options, raised $5.5 million in February.

Nium’s Comprehensive Payment Infrastructure

Nium distinguishes itself by providing access to a comprehensive global payment infrastructure. This includes card issuance capabilities, accounts receivable and payable solutions, and banking-as-a-service offerings, all accessible through a unified API.

The company’s network allows clients to disburse funds to over 100 countries, process payouts in more than 60 currencies, accept funds in seven currencies, and issue cards in over 40 countries, according to Nanu.

Nium also holds money transfer, card issuance, and banking licenses in 11 different jurisdictions.

Riverwood Capital’s Perspective

Francisco Alvarez-Demalde, co-founding and managing partner at Riverwood, emphasized the growing trend of combining software with regulatory licenses to operate fintech infrastructure platforms for neobanks and corporations.

Riverwood had been closely monitoring Nium for several years, and its long-term vision ultimately drove their decision to participate in this funding round. Alvarez-Demalde noted that “Nium possesses a unique combination of a substantial market opportunity, a highly skilled founding team, and is well-positioned for global expansion driven by underlying technological advancements.”

“Nium acts as a crucial payment infrastructure, enabling cross-border payments, local accounts, and card issuance through a network of local licenses, partnerships, and banking relationships, facilitating the movement of money worldwide,” he continued. “Businesses across all sectors are integrating financial services into their customer experiences, and Nium is a key enabler of this trend.”

Expansion Plans and Future Acquisitions

Nanu stated that the new funding will facilitate the company’s relocation to the United States, currently representing 3% of Nium’s total revenue. The goal is to increase this contribution to 20% within the next 18 months, alongside expansion efforts in Latin America.

The investment also provides the company with a 12- to 18-month runway for potential mergers and acquisitions. Nium recently acquired Ixaris, a virtual card issuance company, in June, and Wirecard Forex India in July to gain access to the Indian market.

Further plans include expanding the company’s payments network infrastructure, investing in product development, and growing Nium’s workforce, currently at 700 employees.

Growth and Future IPO

Nium currently serves hundreds of enterprise clients and anticipates onboarding thousands more in the coming year. The company processes $8 billion in payments annually and has issued over 30 million virtual cards since 2015. Revenue has increased by more than 280% year-over-year.

This growth trajectory positions the company for a potential initial public offering (IPO), according to Nanu. Discussions with advisors to formally initiate the IPO process are planned for the first quarter of 2022.

“Our focus is on expanding within our existing service offerings, rather than developing entirely new products,” Nanu explained. “The U.S. represents a new market for us, but we have a strong brand presence and will leverage this funding to enhance the customer experience.”