Knot Card-on-File Management API Raises $10 Million
A FinTech that helps customers update their payment information for more seamless e-commerce has raised an eight-figure Series A.
About the round:
This week, Knot announced that it had raised $10 million. The Series A was led by Nava Ventures while Amex Ventures, fellow FinTech Plaid, and several individuals also participated. To date, the company has now raised a total of $13 million, including a $3 million seed round in 2021.
With the newly-raised funds, Knot plans to scale its services and accelerate its merchant support expansion as it says that it’s aiming to encompass “virtually all online merchants.” Moreover, the company plans to scale their Knot Subscription Canceller and Account Create products.
Knot is an API that allows card issuers to automatically swap saved payment methods when customers request to do so. According to the FinTech, this ability can be added with just a few lines of code. Plus, by offering this ability, the firms says that merchants can reduce churn and increase consumer spending.
What they’re saying:
In a press release announcing the latest funding, Knot CEO Rory O’Reilly said, “Securing this Series A funding signifies the immense trust our investors have in Knot’s potential to revolutionize the way card issuers manage their customers’ payment methods. We’re grateful for the chance to further our mission of building a financially interconnected future, and we’re excited about the new opportunities this funding opens up for our team and our customers.”
Additionally, Amex Ventures Global Head and SVP Matt Sueoka said of the firm’s investment, “We see the potential of Knot’s technology to improve the customer experience in updating card credentials on file, while also enabling uninterrupted payments for merchants. We’re excited to support Knot as they scale their current operations and build out new products and services.”
With backing from the likes of Amex Ventures and Plaid, Knot has instantly become a FinTech to watch. In fact, given their technology and its various applications, it may even prove to be an acquisition target for one of those companies. This is pure speculation at this point — but the possibility isn’t hard to imagine.
Zooming out, given the struggles that the FinTech sector saw in Q2, this solid Series A is welcome news while also sticking with the growing trend of early-stage startups doing the heavy lifting in terms of deal totals. While this still doesn’t come close the the “megadeals” that helped FinTech set fundraising records in previous years, more raises like this can still help fuel a deal resurgence in the back half of 2023 and beyond.