Rebill, an Argentina-based startup, raised $3.6 million to continue building automated payment collection and subscription management tools for Latin America.
The funding announcement includes $600,000 from a pre-seed tranche. The $3 million seed round was led by Tiger Global Management and included Y Combinator, Soma Capital, SV Angel and a group of angel investors, including Dropbox co-founder Arash Ferdowsi and Vercel founder Guillermo Rauch.
CEO Nahuel Candia got the initial idea for Rebill in 2018 when he was consulting for an insurance company in Argentina. His company wanted to manage the whole behavior of collections, including changing the card on file and going through compliance with security measures. The implementation process was estimated to be two to three weeks, but turned out to take one year.
Wanting to make this an easier process, Candia joined with Ariel Díaz Ailán, whose background is in e-commerce, to create Rebill in 2020. Rebill was part of Y Combinator’s Winter 2022 cohort.
The company automates the collection process and integrates payment gateways and invoicing tools so that customers don’t have to create their own. Rebill differs from legacy providers in that it is targeting medium to large companies, is cloud-based and sold on a subscription basis so customers just have to pay a license fee, Candia told DailyTech.
Rebill’s offering also pre-approves credit and debit cards so its customers can collect without having to contact their client or create complex billing scenarios. It also sends payment notifications via multiple channels and enables customers to manage all of their office locations from one platform.
Candia estimates that Rebill’s process cuts down that implementation process from months to hours.
“We reduce the KYC process for each of the payment gateways, so we automatically enable the recurring billing processing for all our merchants,” he added.
Currently, Rebill has clients in Argentina, Chile, Colombia, Mexico, Peru and Uruguay and collects payments in 15 currencies. By having a multi-country, multi-currency approach, the company is growing alongside its customers, who can take advantage of the cloud-based feature to scale their sales regionally in a similar way.
The company has been growing 20% month over month, and grew its employees from four last year to 25 currently. It is going after a Series A round in 2023, and will also be able to demonstrate annual recurring revenue, Candia said.
The new funding enables Rebill to continue expanding its presence into the rest of Latin America. The company will also be working on its payment gateways and bank integration in order to automate the reconciliation process. It is also integrating with customer relationship management, enterprise resource management and lending platforms.
“Our goal is to position our company as the leading payment orchestrator in Latin America,” Candia added. “We plan to double our team by next year and expand more in Mexico and Colombia.”