OatFi, a startup based in New York that focuses on embedded working capital financing, has raised US$24 million in a series A funding round.

The funding round was led by White Star Capital, with contributions from QED, Portage, and Lorimer Ventures.

The company integrates its credit infrastructure into accounts payable (AP), accounts receivable (AR), and business-to-business (B2B) payment platforms.

OatFi’s application programming interfaces (APIs) handle underwriting, origination, and capital deployment.

With this latest funding, OatFi’s total equity financing has reached US$35.25 million.

🔗 Source: Axios

🧠 Food for thought

1️⃣ The economic burden of delayed B2B payments extends far beyond individual businesses

The $35 trillion B2B economy mentioned in OatFi’s funding announcement suffers from a payment terms crisis that has been worsening over time.

Standard payment terms have shifted dramatically from net 30 to net 60, 90, or even longer, creating what some industry observers call a “net never” culture where payments are chronically delayed 1.

This problem is widespread and severe, with 43% of U.S. B2B businesses reporting customers failing to pay on time, directly impacting cash flow and operational stability 2.

The consequences extend beyond mere inconvenience. Businesses facing payment delays often resort to loans to maintain liquidity, increasing borrowing costs and reducing profit margins, while also straining supplier relationships throughout the supply chain 3.

These cash flow disruptions particularly impact smaller businesses, who may be forced to halt operations entirely when larger customers delay payments to manage their own cash flow needs 4.

2️⃣ Embedded finance is rapidly transforming from niche offering to market necessity

OatFi’s embedded financing approach aligns with explosive growth in the broader embedded finance market, which is projected to expand from $125.95 billion in 2025 to $375.68 billion by 2030, growing at a CAGR of 24.43% 5.

This growth reflects a fundamental shift in how financial services are delivered, with embedded lending alone now originating over $150 billion annually across the industry 6.