Resolve, which launched as a spinout from buy now, pay later giant Affirm in 2019, has received a $60 million capital injection to scale its embedded billing platform for B2B businesses to facilitate buying and selling on credit.
Chris Tsai, Resolve’s CEO, told FinLedger that the COVID-19 pandemic has accelerated demand for its services and that this funding will also help meet that demand.
Initialized Capital, KSD Capital, Haystack VC, Commerce Ventures, Clocktower Ventures, among other investors participated in the round.
Tasi said that the San Francisco-based company will use the funding to not only bolster its platform but build out its product and customer-facing teams.
“A chunk of the funding is also going to help provide liquidity on the platform for folks that have to float these invoices to our platform,” Tsai said. “It’s a combination of equity and asset funding that we’re announcing today.”
Tsai would not share at what valuation the round was raised, how many employees the company has or how many its hiring, but the company will be hiring more folks across the board.
Resolve is a “digital net terms” and credit billing platform that extends BNPL capabilities for B2B transactions. Resolve claims to remove the friction and eliminates the risk with managing traditional credit decisions, automated underwriting and 30/60/90 net terms to help accelerate invoice payment and to bolster revenue.
“Software is eating B2B payments. B2B ‘buy now pay later’ has been around for thousands of years for businesses who buy and sell on credit from one another,” said Alda Leu Dennis, General Partner at Initialized Capital said in a prepared statement. “Resolve’s billing platform for deferred payments modernizes this timeless B2B transaction with technology that’s built for the digital and e-commerce era.”
Resolve makes money by charging a subscription fee for the SaaS components of its platform and has a transactional fee for providing the float.
Going forward, Tsai said the company is focusing on meeting the immense amount of demand it’s seeing.
“Today with B2B payments, generically speaking, are five-to-10 years behind consumer payments,” Tsai said. “So the fact that we can support this integrated embedded method of payments is pretty unique to us.”
In other recent news, Affirm has entered an agreement to acquire Returnly, an online returns and post-purchase payments company, for about $300 million in cash and equity, a press release shows. Returnly lets customers obtain an instant merchant credit once starting a return, letting them order a new/replacement item instantly instead of waiting until their return is fully processed.