yaydoo Raises $20M to Revolutionize B2B Collections & Payments

Addressing the B2B Payment Gap: Yaydoo Secures $20.4 Million

The disparity between the ease of peer-to-peer and business-to-business payments has been a longstanding issue, but Yaydoo proposes a solution to bridge this gap.

Yaydoo's Suite of Products

Headquartered in Mexico City, Yaydoo is a B2B software and payments firm offering a trio of products – VendorPlace, P-Card, and PorCobrar – designed to streamline cash flow management and enhance access to intelligent liquidity.

Company Origins and Funding

Founded in 2017 by Sergio Almaguer, Guillermo Treviño, and Roberto Flores, the company’s name is a portmanteau of “yay” and “do,” reflecting the positive experience of accomplishing tasks. Recently, Yaydoo announced the successful completion of a $20.4 million Series A funding round.

Investment Details

This funding round was co-led by Base10 Partners and monashees, with participation from SoftBank’s Latin America Fund and Leap Global Partners. To date, Yaydoo has secured a total of $21.5 million in funding, as stated by Almaguer.

Identifying the Market Need

Prior to establishing Yaydoo, Almaguer observed a demand for payment automation among his large enterprise clients while working at a point-of-sale company in Mexico. However, he recognized that existing solutions were often prohibitively expensive for smaller businesses.

A Solution for All Business Sizes

The founders of Yaydoo aimed to deliver procurement, accounts payable, and accounts receivable functionalities in a simplified and affordable format, specifically catering to the needs of small and medium-sized enterprises (SMEs).

Network Effects and Efficiency Gains

The platform is gaining traction, with vendors onboarding their customers to create a connected network. This integration improves the linking of invoices to purchase orders and facilitates connections to accounts payable systems. Yaydoo reports that its automation workflows reduce time wasted on vendor payments by an average of 80%.

A Growing Fintech Sector

Yaydoo is entering a rapidly expanding fintech landscape. The global B2B payments market is currently valued at $120 trillion annually. Recent activity in the sector includes Nium’s $200 million Series D funding round and a $50 million Series C raise by Paystand, focused on cashless B2B transactions. Dwolla also secured $21 million to enhance its fast payment API.

Future Expansion and Product Development

The newly acquired funding will support the expansion of Yaydoo’s team in Mexico and facilitate entry into other Latin American markets. The company is also exploring opportunities within its working capital business, focusing on invoice data, payment access, and cash flow analysis to identify funding gaps.

Impressive Growth Metrics

Yaydoo has experienced significant growth, increasing its customer base from 200 in the first quarter of 2020 to over 800 currently. Its employee count has also risen from 30 to 100 during the same period. Over 70,000 companies have completed transactions on the Yaydoo network in the past year, with total payment volume reaching hundreds of millions of dollars.

Freemium Model and Customer Acquisition

Yaydoo operates on a SaaS subscription model. The new funding will also enable the introduction of a “freemium” offering to attract potential customers, with the intention of converting them to paid subscriptions as their businesses grow.

Investor Confidence

Rexhi Dollaku, a partner at Base10 Partners, highlighted the firm’s recognition of the modernization occurring in B2B payments and expressed admiration for the Yaydoo team’s ability to build a complex yet user-friendly infrastructure.

Latin American Market Potential

Dollaku believes that Latin America is approximately ten years behind in B2B payment modernization but anticipates rapid progress due to the ongoing digital transformation in the region.

Network Building and Financial Services

“We are witnessing the initial stages of network development stemming from the payments product, which is a positive indicator,” Dollaku stated. “The funding will empower Yaydoo to offer a broader range of financial services to businesses, addressing working capital deficiencies.”