US-based paytech Modern Treasury raises $38m in Series B
Modern Treasury, a California-based payment operations software provider, has raised $38 million in its Series B funding round led by Altimeter Capital. Existing investors Benchmark and Y Combinator also took part.
The company says its payment operations and treasury management solutions have experienced “explosive growth”. The software enables users “to instantly close books with continuous accounting, manage payments and banking through a single platform, and have complete cash visibility”.
Last year, Modern Treasury customers reconciled $1 billion using its platform. The reconciliation volume on its platform grew an average of 23% per month throughout 2020.
According to the vendor, more than $18.5 trillion of business-to-business (B2B) payments are transacted in the US via wires, cheques and ACH payments, with more than half of those still made via cheques. Payments take up to three days to clear and are a labour-intensive process.
Modern Treasury aims to automate each step of the process, connect companies with banks over API, enable real-time payments (which already account for more than 6% of Modern Treasury volume), and replace decades-old legacy systems.
“Modern Treasury is at the forefront of modernising B2B payments, a huge fast-growing and largely untapped market,” says Ram Woo, partner at lead investor Altimeter Capital. “The core infrastructure of business payments has been stagnant for decades leaving businesses to cobble together an unwieldy patchwork of manual processes and point solutions. Modern Treasury empowers CFOs, finance teams, and developers to make effective, automated, real-time decisions to manage the lifeblood of every business – money movement.”