Mexico’s B2B Cash Flow Manager Higo Raises $ 23 Million
Higo, a Mexican B2B firm, raised $ 23 million in a Series A round, CB Insights reported. The company plans to use the capital to increase its workforce.
Higo works primarily with small and medium-sized enterprises (SMEs), automating supplier payments, enhancing visibility of cash flow and providing a consolidated view of company-related invoices, according to the report.
Higo has 31 employees and serves more than 150 companies that pay thousands of vendors $ 10 million per month, including 99minutos.com, Jokr, Benebox and vinoschidos.mx, according to the report.
The company completed its previous funding round six months ago. Since then, Higo has rolled out a financing product to increase liquidity through an accounts payable (AP) extension, according to the report.
PYMNTS reported in March that Higo had reduced the most important parts of supplier payments, realizing that manual processes were not working as they should have been.
Read more: Higo raises $ 3.3 million for B2B cloud payments
“In Mexico, small businesses primarily manage debt with nothing more than spreadsheets, emails and legacy bank accounts,” said CEO Corcuera Meier.
The goal behind Higo is to add more automation opportunities for SMEs, some of these being “informal” and accounting for 23% of gross domestic product (GDP). The company has said it wants to ensure that businesses do not have to use traditional banking services. Corcuera said that Higo “wants[s] to build the Venmo for B2B payments in Latin America.
Higo helps SMEs to have less tedious tasks, giving them more time to focus on their business. Higo plans to exponentially grow its SME customers by the end of the year.
In Mexico, invoicing “must be electronic to be [tax] deductible by law, ”Corcuera said. “With our platform, invoices are automatically filled out so businesses can have visibility into what needs to be paid, which vendors they owe, and when they owe. “