Business Banking Startup Mayfair Emerges from Stealth Mode
A FinTech that helps businesses earn a healthy return on their money is ready to raise its profile. As TechCrunch reports, Mayfair recently emerged from stealth mode and is offering businesses up to 4.02% APY on their parked cash. The startup has partnered with Evolve Bank & Trust — one of the top FinTech partner banks — as well as Stripe. To date, Mayfair has raised a total of $10 million in venture funds. This includes an $8 million seed round in May of last year led by Tiger Global Management. Amity and BoxGroup also participated in the round.
According to the company, it currently has “dozens” of customers. Furthermore, they state the balances of these customers range from tens of thousands of dollars to tens of millions. At the time, their website does not offer a way to simply sign up. Instead, interested businesses can book a demo of the service. While the company says it may charge for some of its cash management features in the future, at this time, that aspect of the service is not yet ready.
In addition to offering a strong interest rate on funds, Mayfair says its platform provides businesses with a way to earn a yield on cash they’re not actively utilizing for operations by employing automated cash management. Speaking to TechCrunch, Mayfair co-founder and COO Munish Chopra explained, “On a daily basis, we’ll rebalance your accounts to make sure that if you’ve got say, more than half a million in your operating account, we’ll move that into the cash account so that it can earn maximum yield.”
Chopra added, “And if you dip below that, then we’ll top up your account so that you always have the half a million bucks that you need for your operating purposes.”
For businesses, the idea behind Mayfair seems like a solid one as it will enable them to put their cash on hand to work for them while allowing them to access their funds when needed. Of course, the timing is also right as interest rates are higher than they’ve been in years.
As for Mayfair itself, with the startup already fairing well in the pre-seed and seed round and attracting the interest of notable venture capital firms, it appears posed for big things down the road. Then again, it is still early days for the service, with only “dozens” of customers to its name. Still, Mayfair could well be a service worth watching as its platform continues to roll out.