FinTech News
Payments API Company Finix Raises $75 Million as Series B Expands
Continuing what’s turning out to be a bit of a trend this year, another FinTech has just announced the expansion of its latest funding round. Earlier this week, Finix revealed that it had added another $30 million to its Series B. The newly-raised money brings the round’s total to $75 million. Lightspeed Venture Partners led this portion of the round with American Express Ventures also participating.
This is actually the second time the company has expanded its Series B, which was first announced at $35 million in February led by Sequoia Capital. That figure was then upped to $45 million in March (with the addition of Inspired Capital and PSP Growth) before rising to $75 million this week. To date, Finix has raised a total of $96 million following a $3.5 million seed round in 2017 and $17.5 million Series A last July.
The extra funds come on the heels of Finix announcing that it saw payment volume more than quadrupled between the second quarter of last year and Q2 2020. Finix has also worked with some of the largest FinTechs, including Kabbage — which, incidentally, is in the process of being acquired by American Express. Billing themselves as “Infrastructure-as-a-Service,” the company also pitches its services to Software-as-a-Service (SaaS) businesses to help simplify their payment procedures.
In a press release announcing the increased round, Finix co-founder and CEO Richie Serna stated, “Businesses everywhere are turning to digital payments and SaaS tools to manage the challenges and changes brought on by the pandemic. We’re proud of the role we’ve played in helping our customers respond to new demands.” He continued, “As we look to bring the power of embedded payments to more companies, we’re excited to have Lightspeed and American Express Ventures as investors who intimately know the software and small business worlds. The new capital allows us to bring in top-tier talent and more quickly pursue our goal of turning all software companies into payments companies.” Meanwhile, Will Kohler of Lightspeed Venture Partners said of the company, “Finix brings together three of our main areas of interest—enterprise software, eCommerce, and FinTech—to empower software companies to design payments deeply and thoughtfully into their user experience while also improving their bottom line. The pandemic has made it clear that seamless digital payments experiences are more critical to success than ever before.”
Finix’s second Series B expansion not only shows the promise of the company itself but also illustrates how hot the digital payments space has been as of late. On that note, a recent Mastercard survey found that the majority of small business owners have been transitioning to digital payment platforms for B2B transactions since the pandemic struck. With that in mind, as these conversions continue, we can expect to see more competition in the “Infrastructure-as-a-Service” business and more big fundraising rounds for Finix and its fellow FinTechs.
