C2FO, the operator of an online marketplace for small-business financing, announced a $40 million equity funding round led by a Singapore investment firm.
C2FO, of Fairway, Kan., facilitates business-to-business transactions that mimic loans but do not involve an actual extension of credit. The firm operates an online marketplace where big companies such as Costco and Walgreens accelerate their payment of certain invoices; in exchange for the speedier payment, the suppliers agree to accept a discounted price.
C2FO competes against a variety of lenders that provide working capital to small businesses.
The firm operates across 15 currencies and is looking to continue expanding internationally. The company said that the $40 million equity investment led by Temasek Holdings, which is owned by the government of Singapore, will help those efforts.
"Temasek's market knowledge and relationships in emerging markets will help C2FO capitalize on the international demand for more effective capital solutions and continue to accelerate our rapid pace of innovation," Alexander "Sandy" Kemper, C2FO's chief executive, said in a news release.
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C2FO also said that its online platform generated $5.4 billion in working capital flows during the second quarter, which was up from $1.2 billion a year earlier.
Kemper, a former CEO of UMB Financial in Kansas City, Mo., founded C2FO in 2008. The company's name is short for "collaborative cash flow optimization."