Fintech firm Finix raises $30 million in funding

• ByStartupStory     |    August 11, 2022

Finix stated today that the company has raised an additional $30 million in venture funding, bringing its total known raised to $133 million. The funding comes roughly two years after the DIY payments business signed a $30 million extension to its $35 million Series B round, and around 18 months after it received a $3 million SPV headed by LatinX and Black investors. The cash tranche is substantially lower than the extended Series B total, although Finix did mention that new investors participated in the round, indicating that this is not an extension round, “due to the growth” that it has demonstrated in the previous six months.

Finix did not divulge its value, instead remarking in a press statement that the capital was raised this summer and “occurred at an enhanced valuation,” while admitting “the present fundraising climate.” The fundamental business of the SaaS firm is to assist software businesses to handle their payments using flexible software, but it has now evolved into being a direct payments facilitator itself. The startup sits beside companies like Stripe, with which it is openly competing.

One month after the business funded its 2020 Series B led by Sequoia in 2020, the venture firm walked from the deal, allegedly returning to Finix a $21 million cheque reflecting the full value of its investment as well as its board seat, information rights, and shares. Sequoia opted to step back because Finix competed directly with Stripe, one of its portfolio darlings, according to TC’s Connie Loizos at the time. Finix doubled down on the Stripe battle in May of this year, announcing that it would directly process payments through its in-house platform, something it had previously been unable to do as an API provider.

 “That was our most important fundamental provision.” What we’ve done today is become the payments facilitator ourselves, so that we can supply not only the payments but also all of the back-office procedures and compliance certifications, allowing our clients to get up and operating in days rather than months.” In a news statement announcing its new funding, the corporation claims that the second quarter of 2022 was the greatest ever in terms of new transactions done. It’s good news after a quarter of conflicting signals for fintech. So, Finix’s strategic shift was significant enough to entice a group of investors to invest in the venture-backed business.

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