Crezco raises $12m, adds Xero feature to B2B invoicing platform

By Gloria Methri

Crezco, the UK FinTech using open banking to simplify B2B invoice and bill payments, has secured fresh funding and integrated its technology into the global small business platform Xero.

Crezco secured $12 million in Series A funding from MMC Ventures and FinTech-focused 13books Capital to enable further growth. Additionally, it signed an agreement with Xero, integrating the technology into its bill payment feature, which will be launched to UK small businesses at the end of the month.

Underpinned by Crezco’s account-to-account payments API, Xero will be the first major small business cloud accounting software in the country to offer on-platform bill payments via open banking.

The solution will allow small businesses to manage, approve, and pay their bills without leaving Xero’s platform simply and securely. To achieve this Crezco uses open banking, a relatively new technology leveraging account-to-account (A2A) payments.

By leveraging Crezco’s technology and API, Xero’s new bill payments feature can help SMBs have a more accurate view of their cash flow.

Crezco targets B2B platforms highlighting the improved user experience.  It is not about replacing card payment with something cheaper but replacing manual bank transfers with something more convenient.

Ralph Rogge, Founder and CEO at Crezco, said, “A2A payments allow Crezco’s partners to move the point of payment from the bank to their platform. This is not just a domestic transfer solution. We connect real-time payments everywhere and it’s one of the most obvious examples of embedded payments.” 

The potential growth opportunities have been recognised by Crezco’s new investors. “The agreement between Xero and Crezco is a great opportunity for open banking to address SME payments in the UK and, over time, internationally”, said Oliver Richards, Partner at MMC, whose FinTech investments include YuLife, Copper, and TreasurySpring. “It is a transformational moment for the company and we are excited to be backing Ralph and the team at this critical point in their growth.”

Michael McFadgen, Partner and Co-Founder at 13books Capital, said, “While there are many exciting opportunities in the arena, it was Crezco’s continued focus on the SME and their payment challenges, domestic and international, that led to our investment.”