Fintech start-up BlueVine raises $40 million to expand online funding

(This January 20 story has been corrected to clarify that BlueVine has headquarters in the United States)

JERUSALEM (Reuters) - Financial technology start-up BlueVine, which provides funds to small businesses through an online service, has raised $40 million in a round led by California-based Menlo Ventures that includes new investor, Japan's Rakuten 4755.T.

Bluevine, which has headquarters in the United States and an Israeli subsidiary for research and development, says it has the first cloud-based platform for a process known as invoice financing, or factoring, in which a business can sell outstanding invoices for cash.

Launched in March 2014, the company says it is on track to fund more than $200 million in working capital in the next year.

The new financing, which brings its total funding to date to $64 million, will be used “to bolster its management ranks, develop new features and fuel expansion into new verticals,” it said on Wednesday.

Reporting by Ari Rabinovitch, editing by David Evans