Toku raised $48 million in a Series A funding round for its accounts receivable (AR) software-as-a-service (SaaS) platform focused on mid-market to enterprise businesses in Chile, Brazil, and Mexico.
In a press release published last Thursday, April 17, by venture and growth equity firm Oak HC/FT, which led the mentioned fundraising, it was noted that Toku will direct the received investments to double down its go-to-market strategy and accelerate product development activities.
Toku’s platform is designed to solve the problem of manual and inefficient collection payment processes, which are currently widely observed in Latin American countries and cause high levels of delinquency, unnecessary friction, and challenges for both businesses and their customers. The corresponding statement by Toku chief executive officer Cristina Etcheberry is contained in a press release. She also separately noted that the latest round of raising financing has once again validated consumer demand for solutions offered by the company. Moreover, Cristina Etcheberry stated that the firm is excited to provide its technology to even more brands and regions.
The press release also noted that Toku’s software allows consumers to orchestrate payment transactions and automate the process of collecting financial operations. In this case, connecting companies’ enterprise resource planning (ERP) systems with banks and payment rails are implemented.
Toku’s technology automates the entire payment cycle by providing customizable payment portals, automated reconciliations, and optimized collection strategies. This was also mentioned in the press release.
Toku was founded in 2020. The company currently serves more than 450 businesses in sectors such as insurance, education, credit, utilities, and real estate.
Oak HC/FT Partner Allen Miller said in a press release that mid-to-large enterprises in Latin America are navigating high operational costs, complex payment infrastructure, and growing delinquency rates. It was noted that Toku is addressing the pain point and empowering businesses in various industries with its seamless, world-class payment technology.
The Series A investment round was conducted approximately two years after Toku’s seed round, during which the company received $7 million in financing.
Full accounts payable and AR automation allow organizations to cut labor costs and reduce the incidence of errors. The results of a special industry study indicate that in the United States, 70% of medium-sized companies that have embraced full AP automation and 40% of firms that have used partial automation are satisfied with the benefits provided by the relevant experience.
The mentioned companies also prioritize the automation of payments of regular amounts and those occurring at regular intervals to increase operational efficiency. In this case, mitigation of the risks associated with error-prone tasks is also provided.
It is highly likely that the automation process in the payment industry will scale, as this is a logical component of the digitalization of this functional environment.
As we have reported earlier, Plaid Raises $575 Million.
