Toku Raises $48 Million to Expand AR Automation Platform in Latin America
Toku has 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 Mexico, Brazil and Chile.
The company will use the new funding to double down on its go-to-market strategy and accelerate its product development, according to a Thursday (April 17) press release posted by venture and growth equity firm Oak HC/FT, which led the funding round.
Toku’s platform is designed to solve the manual and inefficient payment collection processes that are common in Latin America and that lead to high delinquency rates, unnecessary friction and challenges for both businesses and their customers, Toku CEO Cristina Etcheberry said in the release.
“This latest investment round further validates the demand for Toku’s solutions, and we are excited to bring our technology to even more companies and regions,” Etcheberry said.
The company’s software enables payment orchestration and automated collections by connecting companies’ enterprise resource planning (ERP) systems with banks and payment rails, according to the release.
It automates the entire payment cycle by providing customizable payment portals, automated reconciliations and optimized collection strategies, the release said.
Toku was founded in 2020 and currently serves more than 450 enterprises in sectors like insurance, credit, education, real estate and utilities, per the release.
“Mid-to-large enterprises in Latin America are navigating high operational costs, complex payment infrastructures and increasing delinquency rates,” Oak HC/FT Partner Allen Miller said in the release. “Toku is addressing this pain point and empowering businesses across diverse industries with its seamless, world-class payment technology.”
Toku’s Series A round came about two years after the company’s seed round in which it raised $7 million.
Full accounts payable and AR automation allows organizations to cut labor costs and reduce the incidence of errors, according to the PYMNTS Intelligence and American Express collaboration, “Accounts Payable and Receivable Trends: What’s Next in Automation.”
The report found that 70% of mid-sized companies that embraced full AP automation, and 40% of those who employed partial automation, reported being satisfied with the benefits of automation.
It also found that these firms prioritized the automation of payments of regular amounts and those occurring at regular intervals to increase operational efficiency while mitigating the risks associated with error-prone tasks.
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