Stytch raises $90M in Series B funding, valuation at $1B
Stytch recently raised $90 million in its Series B round of funding led by Coatue Management LLC. The round also saw participation from Benchmark Capital, Thrive Capital, and Index Ventures. With this round of capital injection, the company’s valuation has crossed the $1 billion threshold.
The company plans to utilise the capital raised for operation expansion and talent acquisition.
“If you think about other passwordless startups, they’re very widget focused,” said Stytch CEO Reed McGinley-Stempel. “We’ve had enough experience with non-API-first products that we knew there were a lot of limitations to what you can do.”
“For example, one of the common use cases we’ve seen that we would never have anticipated is checkout flows — adding the ability to create a new account at checkout with an SMS password or email verification, rather than guest checkout,” said McGinley-Stempel.
The startup aims to provide its customers a password-less alternative to the online authentication process. The company also recently acquired Cotter, a no-code passwordless authentication platform that allows users the option to add one-tap login.
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