The Flexio platform is becoming popular by revolutionizing business-to-business (B2B) payments in Latin America. For this cause, Flexio has uplifted the $3 Million Seed Round led by Costanoa Ventures by joining hands with Diego Oppenheimer, Latitud Fund, Soma Capital, Daniel Kahn, Omri Mor, and several other notable LatAm founders and Y Combinator alumni.
In 2014, the Mexican government approved a law requiring all B2B payments to be documented digitally in order to increase tax payments, which already existed in the plans across Latin America. According to the World Bank, in 2020, B2B electronic payments recorded $180B in transactions in Mexico alone. Currently, the process is error-prone, making compliance especially challenging for small and medium-sized businesses (SMBs). The challenges include unorganized bills, contracts, and other documents in the absence of staff or systems to manage data entry across various communication channels. These challenges lead to a lack of visibility into the flow of cash, inaccuracy of cash counts, and real-time information.
Since the news spread across the globe, Nathan Schorr, co-founder, and CEO of Flexio, came forward saying, "We experienced these challenges first-hand while building businesses in previous roles. The traditional processes are inefficient and arduous, preventing timely payments and using up valuable employee resources while also negatively impacting cash flow management."
Flexio automates accounts payable (AP) and accounts receivable (AR) for SMBs. Its automation process helps payouts, pay-ins, integrations, and communication with enterprise resource planning systems (ERPs) and accounting software function effortlessly. With Flexio, customers can reduce the time spent by 70% using AR/AP. The entire process can be achieved through a suite of:
A modern interface of the platform that eases the existing methods while in continuation with complying with government regulations
Cashflow analytics for business owners to stay updated on their companies' financial health in real-time and without any reporting lags
Seamless integration with bank accounts through digital payments platform instead of conventional platforms having manual logins
Automation of all invoicing and accounts receivable processes, including all routing, communications, and approvals
Nine billion invoices were processed in Mexico alone in 2020. By focusing on SMBs doing business in Mexico, Flexio provides a much-needed service for an underserved market. We couldn't be more eager about the Flexio team and the technology they are creating to address this huge market opportunity."
Amy Cheetham, Partner at Costanoa Ventures
Today, SMBs businesses represent 70% of the region's GDP. They also employ approximately 60%-70% of the region's workforce. Flexio's current customers are Casa Fronda, Impactum, and Grupo Promesa. Further, Flexio will initiate the automated funding process to accelerate product production to help businesses automate bill payments and invoicing.