Vartana unveiled its new sales closing and technology financing platform to provide sales teams with a range of new products that provide access to upfront cash flow for B2B buyers and sellers of software and hardware. The company also received a $12 million 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 a year after the company emerged with $7 million in seed equity funding and $50 million in committed credit from the i80 Group. With this round, Patrick Salyer, a partner at Mayfield, will join Vartana’s board of directors.
Through this new platform, Vartana is aiming to completely de-risk accounts receivable by providing access to upfront cash flow for all sellers, with worldwide IT spending estimated to be $4.6 trillion in 2023, an increase of 5.1% year over year, according to Gartner.
The Vartana platform offers a suite of payment options — including self-serve financing — all embedded within a seller’s CRM. 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 with 12 to 60 month financing terms, generate multiple payment quotes, manage buyer-seller negotiations with a B2C feel, collect electronic signatures and track deal status from quote to close. With Vartana, 85% of contracts are automatically approved for financing 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 range of financing terms, covering a variety of buyer types. Its proprietary algorithms enable Vartana to pass buyer debt to funding partners, with the goal of 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,” Kush Kella, co-founder and CEO of Vartana, said. “By being completely integrated into a seller’s CRM, our customers are seeing record sales numbers and increased cash flow each month.”
Vartana is working with dozens of enterprise companies, including Motive, Verkada and Samsara.
“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,” Ryan Walsh, regional sales manager at Verkada, said.
Vartana has grown from eight employees to more than 40 and has experienced a 600% year-over-year increase in financing processing volume in the last year. 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,” Salyer said. “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.”
