Previse, a FinTech startup that uses artificial intelligence (AI) to automate invoice payments to suppliers, has raised $7 million (£5.5 million) in series A funding.

The London-based firm, which has developed technology that allows companies to pay B2B suppliers as soon as they receive an invoice, announced the investment from FinTech vehicle Augmentum and American venture capital firm Bessemer Venture Partners.

The funding round alongside existing investors has also seen fresh investment in Tide, the London-based challenger bank for SMEs and DueDil, a private company information platform. Tide will use the £3million investment to support its plans for expansion and to develop further features for its platform aimed at easing administrative burdens on small businesses.

Previse has signed up seven large organisations to its InstantPay programme since it launched in 2016, and in a statement said it was planning to use the funding to scale the business, onboard clients and develop its technology offering.

Paul Christensen, co-founder and chief executive at Previse, said the company’s instant payment service has attracted interest from governments and corporations since it launched just over a year ago.

He added: “Among CFOs at large corporations, there is a real understanding of the huge inefficiencies in the current B2B commerce model and a desire for a solution. With this funding, we will be able to grow our model to meet this demand and ensure that every supplier in the world has the option to be paid instantly.”

Charles Birnbaum, partner at Bessemer Venture Partners, said: “Previse’s clever approach and unique technology allows businesses to avoid the costs and inefficiencies associated with delayed payment terms and can transform the prospects of many businesses that are supplying to large corporations around the world.”

The two investment firms have previously backed leading FinTech and social media forms including Seedrs, Pinterest, Skype and LinkedIn.

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