FundThrough expands with Ampla acquisition, securing $34.6M Series B funding for growth and tech improvements.
Toronto-based FundThrough, a leading provider of invoice factoring for small and medium-sized businesses (SMBs), is making big moves in the financial technology space. The company has announced the successful close of a $25 million USD (CAD $34.6 million) Series B round and the acquisition of Ampla, a U.S.-based invoicing platform. This new phase of growth positions FundThrough to enhance its service offering and deepen its U.S. market presence.
Strategic Growth Amid Economic Uncertainty
In a recent BetaKit interview, FundThrough CEO Steven Uster explained how the macroeconomic uncertainty has driven the company’s decision to raise fresh capital and pursue strategic acquisitions. Uster shared that despite the volatility, invoice factoring remains resilient during times of economic downturn, as businesses increasingly turn to alternative financing solutions when traditional lenders become more cautious.
“Factoring tends to outperform during periods of economic uncertainty because banks tighten up, and large clients hold onto cash longer,” Uster said. As many businesses face disruptions due to rising input costs, FundThrough aims to step in, providing much-needed liquidity to SMBs that are struggling to stay afloat.
Ampla Acquisition Enhances Automation and User Experience
With the addition of Ampla to its portfolio, FundThrough strengthens its technological edge. Ampla brings in automated onboarding and credit underwriting capabilities, allowing FundThrough to streamline its services for customers. This integration also makes it easier for SMBs to connect seamlessly with accounting software, offering a more efficient and user-friendly experience.
The Ampla acquisition marks FundThrough’s first deal since acquiring BlueVine in 2021. This has already resulted in 85% of FundThrough’s clients now hailing from the U.S., and the company’s revenue growth has been robust, increasing by 50% per year on average.
A Competitive Advantage for SMBs in Uncertain Times
The strategic acquisition comes as FundThrough navigates ongoing economic tensions between the U.S. and Canada. Despite these challenges, Uster is optimistic, noting that SMBs that don’t operate cross-border are relatively insulated from the disruption. Moreover, the company’s ability to support businesses during these uncertain times positions it as a key player in helping SMBs weather the storm.
FundThrough’s approach is timely, as invoice factoring proves especially effective in recessionary environments, where large corporations delay payments to smaller suppliers. As a result, SMBs often face cash flow crunches, making alternative financing solutions like those offered by FundThrough more attractive.
Looking Ahead: Scaling for the Future
With the new capital raised, FundThrough is gearing up for significant expansion. The company is now positioned to serve more SMBs, helping them navigate the turbulence of macroeconomic conditions and thrive despite challenges. Uster emphasized that the company will continue to explore synergistic opportunities for future acquisitions.
While the terms of the Ampla deal were not disclosed, Uster has high expectations for the integration. Ampla CEO Anthony Santomo is joining FundThrough as an adviser, and Uster has expressed confidence that Santomo’s deep connections in the investor community will play a pivotal role in shaping FundThrough’s future growth trajectory.
Building Stronger Foundations for SMB Growth
With a clear focus on expanding its service offering and advancing AI-powered solutions, FundThrough is primed to become a significant player in small business finance. By helping SMBs manage their cash flow and providing timely support, FundThrough is shaping the future of alternative financing in challenging economic times.
Stay tuned to Maple News Wire for more updates on FundThrough’s innovations and the financial technology landscape.
