It is no secret that technology for business-to–business payments has yet to catch up with its peer-to–peer counterparts. But Yaydoo believes it has the solution.Mexico City-based B2B payments and software company offers three products: VendorPlace and P-Card. These products are designed to manage cash flow and optimize access to smart liquidity. They also connect small, medium and large businesses with a network of digital tools.Roberto Flores, Guillermo Trevio, Sergio Almaguer founded Yaydoo. The name combines yay with do to express the joy of doing something in 2017. Today, the company closed a Series A round of $20.4 million led by Base10 Partners and monashees.SoftBanks Latin America Fund, Leap Global Partners and SoftBanks Latin America Fund joined them in the round. Almaguer, a TechCrunch reporter, said that Yaydoo raised $21.5 million.Almaguer worked in Mexico at a point-of-sale company before he started the company. Almaguer noticed that automation was needed for large enterprises, but it was too costly for small businesses.Yaydoo was founded by the co-founders to offer procurement, accounts payable, and accounts receivables. However, Yaydoo's simpler structure meant that small businesses could easily collect and pay B2B transactions.Almaguer stated that the idea is gaining momentum and vendors are now adding their customers to the network to link invoices to purchase orders, then connect to accounts payable. Yaydoo estimates that automation workflows have reduced the time spent paying vendors by 80%.Yaydoo joins a fintech sector that is heating up the global B2B payment market, which is worth $120 trillion annually. B2B payments platform Nium raised $200 million in Series C funding at a valuation of $1 billion last week. Paystand raised $50 million in Series C funding last week to make B2B payments more cashless. Dwolla raised $21million for its API, which allows companies to create and facilitate fast payments.This funding will allow the company to hire new employees in Mexico as well as expand into Latin America. Yaydoo will also be looking into future opportunities for its working capital company. This includes understanding how many customers set invoices, access to actual payments and how money flows out and back so it can help with working capital funding gaps. The company will also invest heavily in product development.The company now has over 800 customers, compared to 200 in the first quarter 2020. The company's headcount grew from 30 to 100 in the same period. Over 70,000 companies used Yaydoo to transact in the past 12 months. The total payment volume reached hundreds of millions of US dollars.Yaydoo offers a SaaS subscription service. However, the company will be able to create a pool potential customers through a freemium offer with the goal of turning those customers into a subscription model over time, Almaguer stated.Rexhi Dollaku is a partner at Base10 Partners. She said that the firm was interested in the modernization of B2B payments and was impressed with the Yaydoo team. The Yaydoo team built complex infrastructure but made it simple to use.He believes that Latin America is 10 year behind the rest in terms of B2B payment processing, but will catch up with the digital transformation happening in the region sooner than expected.Dollaku stated that we are beginning to see signs of the network being built from the payments product. Yaydoo will also be able to offer more financial services to businesses in order to fill a fund gap.
