C2FO Success Story: Working Capital Solutions for Your Business

The financial services industry has been transformed by the advent of financial technology (fintech) companies that leverage cutting-edge technology to revolutionize traditional financial systems. These companies offer innovative solutions that streamline processes, enhance financial inclusion, and optimize operations.

One such company that is a prominent player in this industry is C2FO. It is an on-demand working capital platform that provides fast, flexible, and equitable access to low-cost capital to businesses worldwide.

In this article, let's explore the story of C2FO, its business and revenue model, its funding details, and more.

C2FO - Company Highlights

  • Company Name-C2FO
  • Headquarters-Kansas City, Missouri, USA
  • Industry-Financial Services
  • Founded-2008
  • Founder-Alexander C. Kemper
  • Website-

C2FO - About

  • C2FO, which stands for "Collaborative Cash Flow Optimization," is a financial technology company that works towards creating working capital for clients and managing their accounts payable and receivable on demand. It helps companies gain control over their cash flows whenever required. The platform is the first of its kind in the world.

C2FO - Industry

  • C2FO belongs to the financial technology industry as it attempts to deal with the issues of the traditional financial market through key technological interventions. Moving at an impeccable pace, the US fintech market is expected to grow at a rate of 8.6% until 2024. Within the fintech industry, the digital payment sector is growing the fastest. The total transaction value in the digital payments segment is projected to reach US$2,041 billion in 2023. The financial technology industry in the US constitutes 57% of the global fintech market.
  • With more attention and popularity paid to the nuances of the industry like convenience, simplicity, security, transparency, and customization, people are more attracted to the various fintech tools that have been launched in the market in the last decade. With the entire world gearing up for a sea of technological change, the fintech industry is only starting to grow at full throttle in the years to come.

C2FO - Founder and Team

  • Alexander C. Kemper is the founder of C2FO.

Alexander C. Kemper

  • Alexander (Sandy) Kemper holds a Bachelor's degree in History from Northwestern University. He founded C2FO in 2008, which was then named Pollenware. Currently, he serves as the Chairman of the Board and CEO of C2FO. He is also the Chairman of the Board of The Collectors Fund.
  • Prior to founding C2FO, Kemper also founded, which is now known as Perfect Commerce, and served as its Chairman and CEO from 2000-2006. Apart from his role at C2FO, Kemper is an active angel and venture investor, holding reputed positions on the boards of UMB Financial, UMB Bank, NIC, and Dwolla.
  • Since C2FO started gaining momentum in their business, Kemper has hired an extremely talented pool of professionals into the executive board of the company who now collectively run the startup to garner better growth prospects.

The leadership team of C2FO includes:

  • Sanjay Gupta, President, and Chief Operating Officer
  • Dan Karas, Chief Credit Officer
  • Raffaele Sadun, Chief Financial Officer
  • Leslie Olsen, Chief Marketing Officer
  • Ragui Selwanes, Chief Product and Technology Officer
  • Colin Sharp, Chief Sales Officer
  • Bri Simoneau, Chief Accounting Officer
  • Krissy Young, Chief People Officer
  • Anne Steinhaus, Head of Product – Platform
  • David Greer, General Counsel and Corporate Secretary
  • Aditya Devurkar, Head of Data Science and Operations
  • Alex Donnelly, Chief Operating Officer, Americas
  • Chris Atkins, President of Capital Finance and Capital Markets

C2FO - Startup Story

  • C2FO began its journey by curating an on-demand working capital platform that aligned with accounts receivable and accounts payable for many companies. The primary idea behind the startup was the realization of the importance of maintaining cash flow in businesses and the absence of one such facilitator in the industry. Soon, they created an online space where large corporate buyers could negotiate prices with suppliers for quicker payments in return for feasible discounts. Hence, they were able to help the suppliers receive early payments on their invoices at discounted rates depending on their needs and abilities. Today, they have become the world’s largest platform for working capital, operating in more than 180 countries.

C2FO - Mission and Vision

  • The company’s mission is to equip all businesses, big and small, with enough capital for their growth. They hope to serve as the right fit in an industry where companies generally struggle to find and access capital at the right place and at the right time.

C2FO - Name and Logo

  • The name "C2FO" stands for "Collaborative Cash Flow Optimization." The name reflects the company's focus on collaboration and cash flow optimization, which is at the core of its services.

C2FO - Business and Revenue Model

  • C2FO operates as a business-to-business (B2B) marketplace that provides a unique approach to optimizing cash flow for businesses without extending actual credit. The company addresses what is known as the "liquidity paradox," which involves careful negotiation between areas of surplus and deficit funds to facilitate early payment to suppliers in exchange for a discount.
  • In terms of its revenue model, C2FO primarily earns fees from both buyers and suppliers who use its platform. Buyers pay a fee based on the early payment discount offered to suppliers, and suppliers pay a fee based on the early payment they receive. These fees are typically proportional to the transaction amount, the creditworthiness of the buyer, and the discount rate offered.
  • C2FO also adopts a collaborative market approach wherein both buyers and suppliers benefit from the deals made. By creating a win-win situation, C2FO aims to strengthen relationships within the supply chain ecosystem while facilitating early payment and optimizing cash flow for both parties.
  • C2FO's platform can help clients optimize their cash flow and potentially generate additional profit. The company's revenue primarily comes from the fees charged for facilitating early payment transactions.

C2FO - Challenges faced

  • The Federal Open Market Committee voted to boost the overnight borrowing rate by half a percentage point, taking it to a targeted range between 4.25% and 4.5%. Officials have indicated that they expect to maintain higher interest rates through this year, with no reductions anticipated until 2024. As a result, the cost of borrowing for clients may also increase.
  • Furthermore, supply disruptions and rising inflation are increasing the amount of working capital that firms need, resulting in higher costs and increased risk pressure. In light of these challenges, C2FO may need to curate programs like Dynamic Supplier Finance to reduce the impact and help clients navigate through these market conditions effectively.

C2FO - Funding and Investors

  • C2FO has received funding from various world-famous venture capitalists and investors. In 2010, C2FO got its first funding from Union Square Ventures. In 2012, it received $9.1 million in funding from the same party, which was used to expand its workspace and create a risk-free profit market. In 2015, it raised $40 million in a round of equity funding led by Temasek Holdings. The fund was used to build upon the existing market domain of the company.
  • In another round of funding led by Allianz X and Mubadala Investment Company, along with the existing investors from C2FO, the firm completed a funding round worth $100 million in 2018. So as to improve access to working capital as far as the companies are concerned, C2FO went for another round of funding, which was led by SoftBank Vision Fund, through which the company completed the round worth $200 million.

C2FO - Acquisitions

  • C2FO has only made one acquisition so far. In October 2019, C2FO acquired Priority Vendor, which is one of the largest early payment platforms in India. It was C2FO’s initial step to scale up its global presence. The acquisition also ensured that now C2FO will have more than 200 corporate clients like Acer, Costco Wholesale, Flex, Kellogg’s, Mondelez, Pfizer, and Office Depot.

C2FO - Growth

  • C2FO had made its own space in the market by 2010. Soon, it had passed $1 billion in payments by the end of 2011. In 2015, with a vision to gear up for growth at the global level, it opened its London office.
  • In 2015 itself, the company handled more than 8 million transactions a week. The company proudly flaunts that it has generated $210 billion in working capital since its first transaction in 2010. Today, the company serves over 2 million businesses with more than $10.5 trillion in annual sales. Over the years, it has expanded its offices to Europe, China, India, and Australia.

C2FO - Competitors

Some of the competitors of C2FO include:

  • Taulia
  • PrimeRevenue
  • CashFlo
  • Fundbox
  • BlueVine

C2FO - Future Plans

  • In 2023, C2FO aims to expand its product suite to enhance its ability to facilitate working capital for its clients. The firm also aims to address the issues of liquidity in a more nuanced manner so as to propel business further in a positive manner by ensuring that there is better cash flow on a day-to-day basis. C2FO recently got permission to develop a TReDS platform in India. In 2023, C2FO will leverage its understanding of supplier constraints to build upon the TReDS, which will inadvertently benefit various MSMEs that work with C2FO.


What does C2FO do?

  • C2FO is a financial technology company that works towards creating working capital for clients and managing their accounts payable and receivable on demand.

Who is the founder of C2FO?

  • Alexander C. Kemper is the founder of C2FO. He serves as the Chairman of the Board and CEO of C2FO.

What does C2FO stand for?

  • "C2FO" stands for "Collaborative Cash Flow Optimization."

Who are the competitors of C2FO?

Some of the competitors of C2FO include:

  • Taulia
  • PrimeRevenue
  • CashFlo
  • Fundbox
  • BlueVine