Decoding FloBiz’s Series B round, valuation and current shareholding

FloBiz, a startup that helps digitise small and medium businesses recently announced its Series B round of $31 million led by Sequoia Capital India and Think Investments. 

As the company did not disclose a breakdown of the deal, Fintrackr sifted through its regulatory filings to provide a break up of the deal including its valuation and current shareholding structure.

Lead investor Sequoia has infused $14 million in this round followed by Elevation Capital, Think Investment and Beenext — wherein each invested $6.5 million, $5 million and $4 million, respectively.

Apart from the primary investment, this round also saw a secondary transaction in which FloBiz’s existing backer Elevation picked up shares from Shuttle Ventures ($114K), Kothari International Trust ($276K), Pantera Ventures Fund ($688K), Nitin Gajria $139K) and Shantanu Shete ($78K). 

According to Fintrackr’s estimates, FloBiz has raised the fresh round at a valuation of $128-130 million. It’s worth mentioning that the company raised its $10 million Series A round in November 2020 and an undisclosed seed round in February 2019.

Following the fresh allotment of shares, the promoters’ holding has been diluted to 27.5%. Elevation Capital has emerged as the largest stakeholder FloBiz with 20.9% stake followed by Acorn Heavy Industries (Greenoaks Capital) which holds 18.5% stake in the company.

Beenext, Sequoia and Think Investment have 14.8%, 11.3% and 4% stake in Flobiz respectively.

Besides institutional investors, FloBiz counts a long list of angel investors which include Vijay Shekhar Sharma, Kunal Shah, Jiten Gupta, Amrish Rau, Neeraj Arora, Nitin Gupta, Satyen Kothari and Nitin Gajria.

Founded by ​​Rahul Raj, Aditya Naik and Rakesh Yadav, three-year-old FloBiz helps SMEs digitize their invoicing, streamline business accounting and automate workflows of their enterprises through its flagship product myBillBook.

According to Sensor Tower data, myBillBook has amassed more than 8 million downloads on the Play Store since its inception.

The company is also building a neobank platform for small businesses.

With a strong presence in regions like Maharashtra, Delhi NCR, Uttar Pradesh, Gujarat and Tamil Nadu, FloBiz also plans to focus on growth in other regions such as Bihar, Rajasthan, Karnataka and West Bengal.

In bookkeeping, FloBiz competes with the likes of Khatabook, OKCredit, Vyapar and Tally whereas Chqbook, Open and PayO will be its competition in neo-banking that cater to SMEs.