Finix announced today that it has raised $30 million in new venture capital, bringing the total known amount to $133 million. The round comes nearly two years after the DIY payment company closed a $30 million extension for its $35 million Series B and about 18 months after it raised a $3 million SPV led by LatinX and Black investors. .
The cash tranche is significantly smaller than the extended Series B total, but Finix did include new investors in the round, meaning this isn’t an extension round, “thanks to the growth” it’s shown over the past six months. .
New and existing backers The General Partnership (TheGP), Franklin Templeton, Acrew Capital, American Express Ventures, Bain Capital Ventures, Cap Table Coalition, Homebrew, Insight Partners, Inspired Capital, Lightspeed Venture Partners, Precursor Ventures, PSP Growth and Vamos Ventures names share in the last round of the business.
Finix did not disclose his valuation, noting in a press release – while acknowledging “the current funding environment” – that the capital was raised this summer and “acted at a higher valuation”. MovieUpdates reached out to Finix for further comment, but had not heard back at the time of writing.
The core business of the SaaS startup is helping software companies process their own payments through flexible software, although it has since evolved into a direct payment facilitator itself. The company puts companies like Stripe next to it, with which it is not subtle to compete with.
A month after the startup raised its 2020 Series B led by Sequoia in 2020, the venture firm walked away from the deal and reportedly returned to Finix with a check for $21 million representing the full value of its investment. with its board seat, information rights and shares . TC’s Connie Loizos reported at the time that Sequoia decided to pull out because it decided Finix was competing directly with Stripe, one of the darlings of his portfolio.
In May of this year, Finix doubled its Stripe competition when it announced it would facilitate payments directly through its internal platform, which it historically could not have done as an API provider alone. The move to direct facilitation enabled it to attract smaller customers below the previous sweet spot of serving customers with ~$50 million in transaction volume. It also moved into the personal payment space to enable different types of businesses to accept credit card payments. As it often goes in fintech: the wider, the better.
The two steps put Finix entirely on Stripe’s property, although TC CEO and co-founder Richie Serna told Mary Ann Azevedo that Finix differs from Stripe in its focus on creating an open ecosystem. Serna compared his company to Android and Stripe to Apple, which has notoriously worked to keep its iOS platform closed.
“We were building technology that would take three years to be built in-house by dozens of engineers, with tens of millions of dollars in technical R&D and investment, and cut that down to a few months by getting developer-friendly APIs to start monetizing their payments,” he told MovieUpdates in an interview in May. “That was our biggest core offering. What we’ve done now is we’ve become the payment facilitator ourselves, so we can take care of not only the payments, but also all the back office requirements and compliance certifications so that our customers can be up and running within days, rather than months.”
In a press release announcing the new cash, the company said the second quarter of 2022 was its best quarter ever in terms of new deals closed. It’s welcome news in a quarter that saw mixed messages for fintech. So it’s clear that Finix’s strategy shift has made enough difference to get a group of investors to put money into the venture-backed company.