Israeli B2B payment and credit network company developer Fundbox has raised $20 million from MUFG Innovation Partners, the corporate venture capital arm of Mitsubishi UFJ Financial Group, Japan's largest financial group and the world's fourth-largest bank holding company. With this financing, MUFG Innovation Partners has tripled its investment in Fundbox’s recent Series C round, bringing the total equity funding in the round to almost $200 million.
"We are pleased with how Fundbox’s advanced data science and technology capabilities have contributed to its superior portfolio performance, especially during COVID-19," said Akihiko Okamoto, Managing Director & Chief Investment Officer for MUFG Innovation Partners. "Even in the face of these extraordinary economic conditions, the strength of the business has been impressive. Our team has great confidence in Fundbox."
While COVID-19 has had a wide-scale negative impact on many Fintechs, Fundbox has gained strong positive momentum by continuing to grow its customer network, originating credit for existing customers, and enabling faster payments for B2B suppliers. Despite a modest increase in losses early in the pandemic, key portfolio health indicators are now back at, or better than, pre-crisis levels.
Fundbox founder and CEO Eyal Shinar said, "Our investments in real-time data access, machine learning, and rigorous credit management have helped us react very quickly to this unexpected crisis while continuing to serve the majority of our customers. The funding and support from sophisticated strategic investors like MUFG will enable us to continue investing in our technology platform and customer experience, allowing us to exit this pandemic and economic crisis stronger than ever before."
Published by Globes, Israel business news - en.globes.co.il - on May 26, 2020
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