San Francisco-based FinTech startup Finix has raised US$ 30M in a Series B funding round held in August 2020, led by Lightspeed Venture Partners and American Express Ventures.
So, the latest round brings the startup’s total funding to US$ 96M to date. Also, capital raised will be used to increase the headcount of the startup’s team by mid-2021.
Founded in 2016 by Richie Serna and Sean Donovan, the startup offers a payment infrastructure platform that gives enterprises an alternate way to manage, own and monetize their entire payments experience without the pains or outlays associated with building an inbuilt system from scratch. The main aim of Finix is to help companies save the extra costs that third-party payment providers would have otherwise cut away from dealings, subtracting the cost that the startup charges them. Moreover, it generates revenue by charging customers a software fee and a sliding fee on the basis of the number of payments it processes. Although it doesn’t make money on a per-transaction basis, it does gain profit from customers that have high transaction volume.
The startup recently launched a new underwriting model named Flex. It is intended to help businesses working on outdated systems reduce switching costs between payment providers. CEO Richard Serna stated that Finix’s transaction volume multiplied by almost 4.5x from Q2 2019 to Q2 2020. This indicates that the coronavirus pandemic has not challenged the business with “many problems” so far.
Through its Visa collaboration, Finix also enables real-time push-to-card payments.
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