In a significant development for small and medium-sized businesses (SMBs), Apron has successfully raised $30 million in a Series B funding round aimed at transforming the payment landscape for SMBs. This latest investment, coming just a year after their $15 million Series A, underscores the rapid growth and innovation that Apron is bringing to the sector.
Led by Zinal Growth, a tech fund supported by the founder of Checkout.com, the round also saw participation from existing investors, including Index Ventures and Bessemer Venture Partners, as well as notable angel investor Tony Fadell, known for inventing the iPod and serving as Principal at Build Collective.
The challenges associated with managing payments are a common struggle for SMB owners, with many dedicating up to 20% of their workweek to handling invoices and related administrative tasks. This inefficiency can be detrimental, as over 80% of SMBs in the UK cite cash flow issues as a primary reason for failure. Apron’s innovative approach allows business owners and their accountants to receive, sort, approve, pay, and reconcile invoices in mere seconds. By adopting a ‘town square’ model, Apron facilitates seamless transactions between suppliers, buyers, and accountants, significantly reducing the time and effort spent on payment management.
With its proprietary platform, Apron empowers businesses to make payments globally, whether to employees or suppliers, while integrating seamlessly with popular accounting tools like Xero and QuickBooks for immediate reconciliation. Founded in late 2021 by Bogdan Uzbekov, a former product leader at Revolut, Apron has rapidly expanded its customer base, growing over 20 times since its Series A funding just a year ago.
Guillaume Pousaz, Founder of Checkout.com and Chairman of Zinal Growth, expressed enthusiasm for Apron’s progress, stating, “We’ve been deeply impressed by the execution and vision of Bogdan and the Apron team. They have created a delightful product for both SMBs and accountants, and we are excited to continue supporting them on their journey.”
In a similar vein, Luca Schmid, Managing Partner of Zinal Growth, added, “We believe Apron is solving a key pain point that SMB owners know only too well, making managing payments an efficient and enjoyable experience. We are thrilled to deepen our partnership with Apron as they enter the next phase of their journey.”
Reflecting on the company’s mission, Bogdan Uzbekov noted, “Every business we speak to is looking for consumer-grade quality in their B2B software. It doesn’t make sense to them that, in their personal lives, payments can be made and received instantly, but that in business the process is long-winded, siloed, and not fit for purpose. With new investment and expertise on board, we’re excited to bring new talent into the team to innovate, design, and build the sort of B2B payments experience that truly flips payments from painful to powerful.”
The proceeds from this latest funding round will be strategically invested in expanding Apron’s engineering and product teams as they gear up for significant developments in 2025. Key initiatives include the launch of a product designed for larger suppliers that issue invoices to thousands of SMBs, thereby streamlining revenue collection processes. Additionally, the company plans to introduce an affordable expenses management solution tailored specifically for SMBs, addressing customer demand for alternatives to existing market solutions.
Editorial Opinion
Apron stands at the forefront of a vital evolution in the B2B payments industry, particularly as SMBs increasingly seek solutions that mirror the efficiency and user-friendliness of consumer-grade applications. By addressing the persistent pain points surrounding payment processes, Apron is not just enhancing operational efficiency but also empowering SMBs to focus more on growth and customer satisfaction.
With a rapidly expanding customer base and innovative technology, Apron is well-positioned to disrupt traditional payment methods, a necessary evolution in a marketplace where cash flow management is often cited as a major hurdle for success. The leadership team’s commitment to continuous improvement and their keen understanding of SMB needs could very well define the next chapter in B2B transactions, potentially setting new standards in the industry.
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