Plastiq has announced that it has raised USD 75 mln in a Series D round, bringing the company’s total known venture capital raised to more than USD 140 mln, according to TechCrunch.
To use Plastiq, users enter their credit card information on Plastiq’s platform. In return, Plastiq will charge you a 2.5% fee and get the bills paid. While Plastiq was started with consumers in mind, SMBs have now accounted for 90% of the revenue. The new financing round will invest in building out features to give SMBs faster services around payments and processing.
Plastiq provides a way for SMBs and consumers to pay their bills and make sure they have reliable cash flow. For example, restaurants sometimes have a drop in revenue due to seasonality or, as we’re experiencing now with COVID-19, pandemic lockdowns. Those companies still need cash flow, and using Plastiq’s service, they can use credit cards to pay suppliers even in an off season.
Because the Series D round closed at the end of 2019, the company said the pandemic did not impact the deal. However, they had planned to time the announcement with tax season. Now, as small businesses struggle to secure capital and stay afloat due to lockdowns across the country, Plastiq’s new raise feels more fitting.
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