Finix, the payments processing startup that aims to give businesses a way to better manage their payments experience, announced Sequoia Capital led its Series B financing round.
Sequoia Capital was joined by other investors, including Activant Capital and Inspired Capital, as Finix raised US $35 million in the round. Finix did not disclose a new valuation as part of the round.
Pat Grady, who is a partner at West Coast venture capital firm Sequoia Capital, will join the board at Finix and said: “Historically it was difficult for software companies to bring payments in-house, but Finix is changing that.
“As more software companies look to become payment companies, Finix’s developer-friendly building blocks have made it possible for software companies to fully own and monetise their payments, without needing a massive internal payments team.”
This new funding adds to the US $17.5 million Series A funding Finix raised in July last year, meaning it now has US $55 million in venture capital.
Finix allows companies to build their own payments processing platforms using its Application Programming Interfaces (APIs), available through a subscription-based model. According to reports, the average cost of building a bespoke payments framework is US $3 million.
The firm plans to use the new funding to grow internationally, its service may well be very beneficial for financial services firms who are increasingly looking to bypass banks and credit card companies.
According to Finix’s CEO Richie Serna: “The customer base we were selling into, the biggest block of them entering into international markets was their payment strategy.”
The new funding raised will be used to push Finix’s growth internationally. It operates currently with offices in San Francisco and Cincinnati, and has customers in Costa Rica, Colombia, Canada, Mexico and the UK.
Finix will also use the new venture capital to hire across all their departments, particularly on the product and engineering side because it wants to help startups spend less time in payment processing through its Infrastructure-as-a-Service model.
Cloud delivery models like these may well enable firms to reduce operational infrastructure costs. Financial services companies now have another method by which they can modernise payment systems.
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