A local payment-processing company that specializes in helping businesses compensate vendors has pulled off a big payday of its own.
Paymerang, a Chesterfield-based financial technology firm, this week announced the closing of a $26 million fundraising round with Maryland-based private equity firm Aldrich Capital Partners as the lead investor.
Founded in 2010 as AP Advantage and known until last year as The Payments Co., Paymerang offers a software platform through which businesses can electronically and securely pay vendors.
CEO Nasser Chanda said while companies like PayPal and Venmo have simplified payments among consumers, Paymerang seeks to do the same for business-to-business payments.
“Consumer payments are spoken for, but B2B payments are messier, they’re more complex,” Chanda said. “There are often differences between payers and payees, discounts, payment terms. They require a lot more work and the process is very manual, paper-laden. Our company is there to help automate that.”
Chanda said the new funds, which bought Aldridge a majority stake in Paymerang by buying out previous investors, would be used to grow its product development and technology staff and increase its sales and marketing footprint.
Paymerang has a staff of under 50 at its office in The Winchester Building near the intersection of Midlothian Turnpike and North Courthouse Road. Chanda said it may have to expand its office within the year.
The company’s clients span industries including healthcare, education, media, banking and engineering. Some local clients include Patient First, Collegiate School and Randolph-Macon College.
The company processed $1.5 billion in payments for more than 80 clients in 2016. It earns money by taking a fee on each payment it handles.
Paymerang isn’t the only local payments company to recently catch the eye of investors.