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Koverly raises $7.6 million for B2B BNPL

Aug 22, 2023
Illustration of Earth made of currency from the G7 countries.

Illustration: Shoshana Gordon/Axios

Koverly, a startup serving businesses making international payments, has raised $7.6 million in funding, the company tells Axios exclusively.

Why it matters: The company offers a cash-flow management platform for businesses participating in international commerce.

Details: Koverly's financing has been raised over a series of tranches since the company was founded in 2021, and investors include Accomplice VC, Vinyl Capital, and One Way Ventures.

How it works: Waltham, Mass.-based Koverly combines international payments infrastructure with a B2B lending product to help importers and other international buyer manage their cash flow.

  • It enables customers to make global payments via bank transfer, credit card, or business debit from a single interface in more than 100 currencies with no wire transfer fees.
  • The company also provides a pay-over-time option called KoverlyPay — kind of like a B2B BNPL — that provides short-term financing of up to $500,000 to qualified borrowers.
  • Businesses using its global payment services can defer foreign exchange payments by up to 30 days at no cost, or extend bill payments for up to 12 weeks.

Flashback: Initially, Koverly's model was to provide cash flow management to businesses making domestic payments, says founder Igor Ostrovsky.

  • The company pivoted after it found many of its target customers also needed to make purchases overseas.

Between the lines: With its FX financing offering, the company is "effectively giving you the first 30 days of that transaction free of cost," Ostrovsky says.

  • That's important, he says, because, "The time that it takes between you purchasing something overseas and it arriving in the US... you have to manage pretty extensive cash flow cycles relatively precisely."
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