Company announces Series A round of financing led by Mayfield, 600% YoY growth and major customer wins
Vartana unveiled its new sales closing and technology financing platform to provide sales teams with a range of new products that eliminate sales closing friction and provide access to upfront cash flow for B2B buyers and sellers. The company also announced a $12M Series A round of financing led by Mayfield, with strategic investment from Xerox Ventures and continued investment from Flex Capital and Audacious Ventures. This comes just a year after the company emerged from stealth with $7 million in seed equity funding and $50 million in committed credit from the i80 Group. With this round, Patrick Salyer, Partner at Mayfield will join Vartana’s Board of Directors.
Vartana deepens its product market fit with the launch of its new enterprise sales closing platform which has become the cornerstone for B2B sales teams around the country as they are now, more than ever, met with the need for payment flexibility. Today, more than 30% of B2B technology purchases require payment flexiblity, but sellers don’t have a simple solution unless they offer monthly payment plans on their own—resulting in increased account receivable (AR) risk. Vartana aims to completely de-risk AR by providing access to upfront cash flow for all sellers, and the team is only getting started as worldwide IT spending is estimated to be $4.6 trillion in 2023, an increase of 5.1% YoY according to Gartner.
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The Vartana platform now empowers technology companies to close deals faster with a full suite of payment options—including self-serve financing—all embedded within a seller’s CRM, ensuring a seamless sales closing motion, and making it easier than ever to optimize cash flow for both sellers and buyers. In the last year, the Vartana platform has evolved from being a self-serve financing platform to an all-in-one sales closing platform which can be used on any B2B sales deal. The Vartana enterprise grade, white-labeled platform is now designed to accept any payment form (pay now, pay later (+15-120 days), 12-60mo financing terms), generate multiple payment quotes in seconds, manage buyer-seller negotiations with a B2C feel, collect electronic signatures, and track deal status—from quote to close. The platform allows complete payment flexibility by offering buyers the ability to pay how they want: deferred payments, finance in equal installments, or pay immediately—all while ensuring sellers receive full contract value on day one. With Vartana, 85% of contracts are automatically approved for financing immediately and the time to finance the remaining contracts is reduced by up to 30%.
To achieve an 85% automatic approval rate, Vartana created the Vartana Capital Marketplace which operates in the backend of the Vartana system, where it matches a network of funding partners, including large banks, with buyer loan requests. The Vartana Capital Marketplace enables the company to offer a broad range of financing terms, covering a wide variety of buyer types, with industry-leading interest rates. Its proprietary algorithms enable Vartana to pass buyer debt to the funding partners, minimizing exposure and liability for any deal.
“Vartana is eliminating the inherent friction involved in the B2B sales closing process by arming sales reps with the ability to seamlessly move deals forward, regardless of a buyer’s preferred payment terms,” said Kush Kella, co-founder and CEO, Vartana. “By being completely integrated into a seller’s CRM, our customers are seeing record sales numbers and increased cash flow each month.”
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Vartana works with dozens of enterprise companies including Motive, Verkada, Samsara, and others to provide them with the capabilities they need to close deals faster. “Vartana allows us to expand our offering and book of business to customers we otherwise wouldn’t win. They are taking a tech company approach to an otherwise outdated industry and are great to work with,” said Ryan Walsh, Regional Sales Manager, Verkada.
The company has experienced significant growth since coming out of stealth just one year ago. Vartana has grown from 8 employees to more than 40 and has seen an increase of over 600% YoY financing processing volume. The company has also onboarded more than 10,000 commercial and mid-market buyers on the platform in the last 12 months.
“Vartana’s B2B closing and financing platform modernizes and digitizes a painful, offline deal closing process that is mission critical to any company,” said Patrick Salyer, Partner at Mayfield. “The Mayfield team is excited to partner with Vartana because of our confidence in the team and their ability to build a market leading software platform and balance sheet light business.”
