Mexican Flexio, an automated collection and payment management platform, has just announced a $3 million Seed round aimed at expanding its reach in Mexico. The funding came from U.S.-based funds such as Costanoa Ventures, Soma Capital, Latitud Fund, in addition to Omri Mor (Routable), Diego Oppenheimer (founder of Algorithmia, a startup sold to Data Robot in 2021), and several LatAm entrepreneurs.
In the company’s blog, Nathan Schorr, co-founder of Flexio, explained that the funds will be used to improve the startup‘s product, scale the team and sales.
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The company’s idea, whose mission is to make life easier for entrepreneurs by solving the task of organizing and paying bills in a clear and intuitive way, came from the past experience of the founders. “In a past project, together with Andrés [Hernández C] and Juan Manuel [Sobral], we experienced the weight of the accounts receivable snowball. And the numbers hurt: we spent 35 hours a month on payment and collection processes, which ended up being manual and generated a constant climate of friction between the supplier and the customer. This is how we realized the third and absolute validation of a business in Latin America and which the books do not talk about: when those who buy your product and service pay you,” Schorr wrote in his blog post.
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The expansion plans of the platform, which currently serves clients such as Impactum, Casa Fronda, and Grupo Promesa, are based on the high demand for financial services that Latin American companies have and will have. According to Schorr, by 2035, Latin America will handle around 21 billion electronic invoices, of which 13 billion will correspond to transactions between companies. The entrepreneur also cites a series of recent rules in Mexican legislation that made the entire process of paying bills more complicated. “In Mexico, companies can take up to 14 minutes to pay a single invoice,” Schorr said.
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In practical terms, to use Flexio’s solution, a company only needs to open an account and connect its mailbox to the platform. After that, all information will be synchronized, promises the startup, clearly showing invoices pending collection and payment. Schorr often says that his platform cuts the time companies spend on this task by 70% or more.
In addition to facilitating the financial management of Latin American companies, Flexio’s founder says that his main objective is to connect Latin American companies easily.
Other Spanish-speaking Latin American countries and Brazil are on the startup‘s roadmap after conquering Mexico.