Plooto has closed a Series B round of funding, the Toronto-based financial technology firm announced this week.
The Canadian fintech raised US$20 Million in an all-equity round led by Centana Growth Partners, a specialized growth equity firm that invests in the future of finance.
The round, which included participation from existing investors FINTOP Capital and Luge Capital, will be used to drive customer expansion, introduce new product lines, and ramp up hiring, according to a statement from Plooto.
”Our vision, since inception, has been to enable the advancement of entrepreneurs to reach their full potential without being bogged down by cumbersome and inefficient financial processes,” said Hamed Abbasi, CEO and co-founder of Plooto. “By expanding our platform’s automation, workflows and payment capabilities, Plooto has become the mission control for managing cashflow end-to-end.”
Small businesses in Canada employ more than 10 million people and contribute to 40% of the gross domestic product.
“Beyond their economic contributions, entrepreneurs and SMBs, in general, have largely shaped our modern world and our mission is to see more of them succeed,” said Serguei Kloubkov, CTO and co-founder of Plooto.
Poor cashflow management is the largest cause of failure for small businesses, says Kloubkov. His startup provides end-to-end accounts payable and accounts receivable automation software for these organizations.
“[Plooto] solve a real problem for their customers in an innovative way,” stated Ben Cukier, Partner at Centana Growth Partners.
“We have been impressed by Plooto’s ability to execute and demonstrate results no matter the challenges of building a payments company and the macroeconomic environment,” added John Philpott, Partner at FINTOP Capital.
“They are relentless about delivering an exceptional product experience, and work tirelessly for their SMB customers,” agrees Karim Gillani, General Partner at Luge Capital.
Plooto previously raised US$6.34 million through a Series A round of financing in early 2021 led by FINTOP with participation from Luge and Inovia Capital.
Plooto first launched in 2015 as a payments platform for SMBs. Today 8,500 finance teams, accountants, and bookkeepers use the fintech’s cloud-based solutions.