Artificial intelligence and data science firm Previse announced an $11 million funding round today led by Reefknot Investments and Mastercard, with participation from existing investors Bessemer Venture Partners, Hambro Perks, and Augmentum Fintech.
Previse was founded in 2016 by a team of experts in trade finance, artificial intelligence, and enterprise technology.
Their artificial intelligence analyses the data of a large company to detect the very few invoices that need intervention, so that they can pay the rest instantly.
Reefknot is a highly strategic Venture Capital firm, jointly founded by Temasek Holdings and Kuehne + Nagel, which specializes in investment in and support to transformative logistics and supply chain technology start-ups globally.
Reefknot has chosen to invest in Previse due to Previse’s technological capability to transform global commerce, enabling millions of suppliers to be paid instantly upon invoice without having to wait months.
Payment of invoices by traditional methods often takes months. This is disproportionately damaging to SME suppliers as it reduces their cash flow and limits opportunities for investment and growth. The current Covid-19 crisis has highlighted the devastating cost of this systemic inefficiency.
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Previse’s current funding round will support continued growth, as the business rolls out its instant payment technology, InstantPay, to more large corporate buyers all over the world.
Previse is part of Mastercard’s Start Path program. Mastercard has used InstantPay with a select group of its own suppliers as part of an ongoing effort to make B2B commerce more efficient and sustainable.
“This backing and investment from our new partners will support Previse as our instant payment technology, InstantPay, moves to adoption by more large corporate buyers all over the world. Now, more than ever, it is important to increase the resilience of supply chains and support SMEs that economies across the world depend on. The best way to do this is for large corporates to pay invoices fast. We give corporates the tools and incentives to do that, at our risk and with 3rd party (bank) capital,” says Paul Christensen, Co-founder and CEO at Previse.
Marc Dragon, Managing Director at Reefknot, says that Previse has identified and is addressing a huge problem that affects businesses all over the world, with a solution which is a win-win for suppliers and buyers.
“We are pleased to be part of their journey to promote sustainable supply chains by getting businesses paid instantly,” he says.
“The business world has accelerated, but the payments that enable it remain stuck in neutral. Effort needs to be applied to more strategic work and back-offices need tools to help streamline operations. It is solutions and innovations like those being driven by Previse and Mastercard, through banks to their corporate customers, that will help businesses support their suppliers, and liberate them from inefficient processes,” James Anderson, Executive Vice President, Global Commercial Products at Mastercard, comments.