Apron, a financial technology startup aimed at small and medium-sized businesses (SMBs), has successfully raised $30 million in a Series B funding round. The company, founded by former Revolut product lead Bogdan Uzbekov, is positioning itself as a comprehensive financial platform for businesses with up to 100 employees.
The funding round was spearheaded by Zinal Growth, the technology investment fund established by Checkout.com founder Guillaume Pousaz. Other participants included previous investors Index Ventures, Bessemer Venture Partners, and Build Collective, the investment firm of iPod inventor Tony Fadell.
Uzbekov, who spent three years at Revolut before a stint at Block (formerly Square), founded Apron in 2021. His experience working on Block’s consumer money transfer app, CashApp, highlighted the disparity between consumer and business payment experiences.
“It was like business payments were a decade behind consumer payments,” Uzbekov told media publication Sifted in an interview.
Apron’s mission is to bridge this gap by offering an all-in-one platform where SMBs can manage various financial tasks, including paying suppliers and employees, as well as handling invoices. The company generates revenue through a tiered subscription model, with fees ranging up to £49 per month for businesses and accountants.
An additional revenue stream comes from a 2.9% fee charged on a product allowing businesses to pay suppliers with credit cards, even when not typically accepted. Apron has plans to expand its product offerings, including a business expenses card and a solution to streamline invoicing between large suppliers and small businesses.
While Apron reported a loss of £3.9 million in 2023, according to Companies House filings, Uzbekov emphasizes that the company’s current focus is on growth and product development rather than immediate profitability.
“We’re focusing on distribution and growth at this stage as well as investing into new products,” Uzbekov stated. “We’re gross profit positive but we’re not at the stage where we want to achieve profitability.”
The success of Apron adds to the growing list of startups founded by former Revolut employees. Industry observers have noted that Revolut is becoming a “founder factory,” with at least 15 businesses launched by its alumni in the past year alone.
This trend may accelerate following Revolut’s recent valuation increase from $33 billion to $45 billion, which resulted in a £500 million payout to current employees through a share sale. This windfall could potentially inspire more Revolut staff to venture into entrepreneurship.
Uzbekov credits his time at Revolut as instrumental in shaping his approach to building Apron. “I often describe Apron as taking the execution from Revolut and the product depth from Square,” he explained. “Revolut is incredible at building things and solving hard problems — I definitely learned that from Revolut.”
As Apron continues to grow and develop its platform, it faces the challenge of differentiating itself in an increasingly crowded market for SMB financial services. The company’s success will likely depend on its ability to deliver on its promise of a truly integrated financial experience for small and medium-sized businesses, while also navigating the complex regulatory landscape of business finance.
The injection of $30 million in Series B funding provides Apron with significant resources to pursue its ambitious goals. As the company expands its product offerings and user base, it will be worth watching how it balances growth with the eventual need for profitability in the competitive financial technology sector.
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