Lightspeed Venture Partners and American Express Ventures participated in the round as software companies increasingly look to become payments companies
Finix, the payments infrastructure company, has raised additional funding to help vertical Software-as-a-Service (SaaS) providers and fintech companies build better payments experiences for their merchants, bringing Finix’s total funding to $96 million to date. This latest financing is an extension of Finix’s $45 million Series B round announced in March 2020 and comes on the heels of a 4.5x increase in payments volume from Q2 2019 to Q2 2020. Lightspeed Venture Partners led the extension with American Express Ventures’ participation.
“Businesses everywhere are turning to digital payments and SaaS tools to manage the challenges and changes brought on by the pandemic. We’re proud of the role we’ve played in helping our customers respond to new demands,” said Richie Serna, CEO and Co-founder of Finix. “As we look to bring the power of embedded payments to more companies, we’re excited to have Lightspeed and American Express Ventures as investors who intimately know the software and small business worlds. The new capital allows us to bring in top-tier talent and more quickly pursue our goal of turning all software companies into payments companies.”
Payments is a massive and fast-growing industry—$2 trillion growing at 6% per annum. Recent months have seen private and public market activity underscore the significant growth of the payments industry worldwide. The pandemic has also turned many businesses towards cloud infrastructure and platform services like Finix provides. In Q2 2020, cloud spending rose to $30.5 billion, $7.5 billion more than the same quarter of last year. Both the cloud and digital payments transformations are in their early stages. As the trends grow and merge, SaaS enterprises are increasingly looking to manage payments infrastructure the way they do web services.
“Finix brings together three of our main areas of interest—enterprise software, eCommerce, and fintech—to empower software companies to design payments deeply and thoughtfully into their user experience while also improving their bottom line. The pandemic has made it clear that seamless digital payments experiences are more critical to success than ever before. Massive enterprises and startups alike should take advantage of Finix and its spot at the intersection of the cloud and payments,” said Will Kohler, Partner at Lightspeed Venture Partners.
Finix’s growing and diverse customer base includes mobility management platform, Passport Labs, private club management software platform, Clubessential, retail point-of-sale company, Lightspeed POS, and more. SaaS companies and fintechs like these are using Finix APIs to build and manage business-critical payments experiences for the same reasons they use cloud services: to reduce cost, increase flexibility, and accelerate time to market. And just like with cloud, as digital payments are adopted, the beneficiaries are increasingly small businesses using SaaS tools.
“Traditionally, companies who have wanted to operate their own payments infrastructure either had to build payments capabilities in-house, which is costly and time-consuming, or outsource to a third-party provider, which can also be expensive. Finix provides a solution that enables companies to own, manage and monetize their entire payments experience,” said Lindsay Fitzgerald, Managing Director at American Express Ventures. “Finix and American Express share a dedication to helping businesses simplify operations and grow their business. We are excited to support Finix’s continued growth as they deliver tools for eCommerce innovators.”
Source: Company Press Release