Modern Treasury, a payment operations software provider, today announced a $38 million Series B funding round led by Altimeter Capital, with prior backers Benchmark and Y Combinator participating.
The funding occurs amid explosive growth for Modern Treasury’s payment operations and treasury management solutions, which enable companies to instantly close books with Continuous Accounting, manage payments and banking through a single platform, and have complete cash visibility.
Annually more than $18.5 trillion of business-to-business payments are transacted in the U.S. via wires, checks, and ACH payments, with almost half of those still made via check. Payments take 1 to 3 days to clear and finance teams spend hours tracking them from initiation to approvals to accounting to reporting.
Modern Treasury automates each step of the process. Its software replaces decades-old legacy systems. It makes it easy for growing companies to connect with banks over API. And, it enables rapidly growing Real-Time Payments, or RTP.
“Modern Treasury is at the forefront of modernizing B2B payments, a huge fast-growing and largely untapped market,” said Ram Woo, Partner at 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.”
In 2020, Modern Treasury customers reconciled $1 billion using its platform and reconciliation volume on the Modern Treasury platform grew an average of 23% per month throughout the year. Reconciliation is an accounting process comparing records to make sure that figures are correct.
“Finance is at the heart of any company’s success, especially in times of rapid change,” said Dimitri Dadiomov, Modern Treasury CEO and co-founder. “This funding will enable us to help more companies, both large and small, modernize their finance function, and reconcile the next billion dollars in payments.”
“We see enormous potential, as well as enormous markets, for innovation in B2B payments,” said Chetan Puttagunta, General Partner at Benchmark and a Modern Treasury board member. “Companies need new tools to upgrade these behind-the-scenes processes to increase speed, efficiency, and accounting ease, and to have more insight into finances to inform better decision making.”
One way companies are embracing payment innovation is with RTP, the first new payment system in 40 years. RTP already accounts for more than 6% of Modern Treasury volume. Enabled by a consortium of top banking institutions, RTP enables instant 24x7x365 payments.
To date, Modern Treasury has raised $48 million in funding. The latest round will enable it to expand the suite of tools it offers to finance teams in all industries, including healthcare, real estate, financial services, and marketplaces.