Birmingham-based fintech Fuse has raised £29 million in a funding round to expand its platform that uses artificial intelligence to tackle the construction industry's chronic late payment problem. The company, founded in 2018, aims to help small and medium-sized enterprises (SMEs) get paid faster by automating invoice processing and providing early payment options.
Funding Details and Investors
The Series B round was led by Silicon Valley Bank and included participation from existing investors such as Mercia Asset Management and Frontier Development Capital. Fuse has now raised a total of £45 million since its inception. The new capital will be used to accelerate product development, expand the sales team, and grow the customer base across the UK construction sector.
Impact on Construction SMEs
According to Fuse, the construction industry sees an average of £30 billion in late payments annually, with SMEs often waiting over 60 days for settlement. The fintech's platform uses AI to verify invoices against project milestones and automatically release payments once work is approved. This reduces payment times to as little as 14 days, improving cash flow for subcontractors and suppliers.
"Late payments are a huge burden on construction SMEs, and we're determined to change that," said Fuse CEO and co-founder, John Smith. "This funding will allow us to scale our technology and help thousands more businesses get paid on time."
Technology and Market Position
Fuse's platform integrates with project management software and accounting systems to create a seamless payment workflow. The AI component learns from historical data to flag discrepancies and ensure compliance with contract terms. The company claims its system has processed over £1 billion in invoices since launch, with a 99% accuracy rate in payment verification.
The construction sector is notoriously slow in adopting digital payments, but Fuse has seen rapid growth as more firms seek solutions to cash flow pressures. The company now serves over 500 businesses, including major contractors like Kier and Galliford Try.
Future Plans
With the new funding, Fuse plans to launch additional features such as supply chain finance and dynamic discounting, allowing contractors to offer early payment in exchange for a small discount. The company also aims to expand into other industries with similar payment challenges, such as manufacturing and logistics.
"We see huge potential beyond construction," added Smith. "Our technology can be adapted to any sector where slow payments stifle growth."
