Funding

Bumper Pulls in $48 Million to Drive Growth in BNPL for Car Repair

Bumper Pulls in $48 Million to Drive Growth in BNPL for Car Repair
By Julie Muhn (@julieschicktanz) Posted on
Categories: Funding
  • Bumper received $48 million in funding for its BNPL tool for vehicle repairs.
  • The funding round was led by Autotech Ventures and comprised of $18 million in equity and $30 million in debt.
  • Bumper’s partner dealers have facilitated BNPL payments for more than 250,000 repairs in the past 12 months. The company hopes to double that this year.

Bumper, a payment platform for car dealerships, landed $48 million (£40 million) in Series B funding today. The funds consist of $18 million (£15 million) in equity and $30 million (£25 million) in debt.

Autotech Ventures led the round, which saw contributions from Shell Ventures, JLR’s InMotion Ventures, Porsche Ventures, and Revo Capital. The investment, which boosts the U.K.-based company’s total funding to $64 million, will help Bumper expand the reach of its buy now, pay later (BNPL) platform for car repair bills.

Bumper plans to use today’s funds to expand across Europe, specifically in the U.K., Spain, Germany, the Netherlands, and Ireland.

Bumper was founded in 2013, well before the BNPL boom of 2020. The company is currently partnered with 5,000 car dealerships that offer car repair services. In the past 12 months, these dealerships have provided BNPL payments for more than 250,000 repairs for Volvo, Ford, Nissan, VW Group, JLR, Porsche, and more.

Customers begin engaging with Bumper before they ever enter the dealer. The car owner applies for a credit limit of up to $6,300 (£5,000) at home and receives an instant decision. If they are pre-approved, they receive a unique Bumper Code that they show to their service provider, who then sends the customer a link to set up their payment plan. The customer can select to spread their payment over the course of one month to six months, interest free.

Bumper offers a suite of payment options– both digital and physical. Customers can opt to pay using open banking payments, card payments, or at card terminals located in the dealership. All payment methods can be fully integrated into the dealer’s existing infrastructure.

Looking ahead, Bumper wants to double the number of BNPL transactions it has facilitated in the past year. “We want to be the dominant payment platform for car dealers across Europe,” explained company Co-founder and CEO James Jackson. “We’ll do it by providing a no-brainer solution, one that gives their customers the ultimate flexibility in making the necessary payments to keep their cars on the road.”

The timing for this growth objective is favorable. The cost of living crisis is driving up the use of BNPL across sectors. High-ticket auto repairs, which often catch consumers off-guard, are an ideal use case for BNPL. “There has never been a more important time for a business like Bumper, with consumers across Europe feeling the pinch amidst high inflation, rising bills and escalating rent or mortgage costs,” said Jackson. “The need for a flexible way to pay for car repairs is vitally important for drivers, and dealers want to ensure they can provide customers every reason to book them in there and then.”

While the number of merchants offering BNPL options for high-ticket goods has expanded around the globe, there are not many providing the new payment option for services, such as auto repair. That said there are a handful of BNPL companies that specialize in travel experiences and some, including Sunbit, that offer BNPL for medical services, vet bills, as well as auto repair bills.

Photo by DS stories

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Aqua Security Earns Unicorn Status on $60 Million Funding Extension

Aqua Security Earns Unicorn Status on $60 Million Funding Extension
By David Penn Posted on
Categories: Daily news, Funding
  • Aqua Security raised $60 million in follow-on Series E funding this week. The investment boosts the cloud native security platform’s valuation to more than $1 billion.
  • New investor Evolution Equity Partners led the round. Existing investors Insight Partners, Lightspeed Venture Partners, and StepStone Group also participated.
  • Founded in 2015, Aqua Security maintains headquarters in Boston, Massachusetts and in Israel.

With six of the top 10 banks in North America and six of the top seven banks in Canada among its customers, Aqua Security is the latest security platform to earn unicorn status.

Headquartered in Boston, Massachusetts – and in Israel – cloud native security platform Aqua Security has raised $60 million in funding. The round was an extension of the firm’s Series E round, and was led by new investor Evolution Equity Partners. Featuring participation from existing investors Insight Partners, Lightspeed Venture Partners, and StepStone Group, the investment boosts the Aqua Security’s valuation above $1 billion.

“Eight years ago, we envisioned a world where all new applications would be built native to the cloud,” company co-founder and CEO Dror Davidoff said. “Today we are here in a market we pioneered with a purpose-built solution to protect customers’ digital transformations. We are excited for what’s ahead in 2024.”

Founded in 2015, Aqua Security specializes in protecting cloud native environments. The company helps its customers build applications that are, according to Aqua Security co-founder and CTO Amir Jerbi, “secure by design, enabling agile DevOps and hybrid cloud deployment with no compromise on security or compliance.” The company’s Cloud Native Application Protection Platform (CNAPP) secures the full application lifecycle from threat prevention, detection, and response. This includes software supply chain security to ensure code integrity and minimize vectors for attack. The platform also provides vulnerability scanning and management, as well as comprehensive, advanced malware detection.

This week’s investment takes the company’s total equity funding to $325 million. The investment also follows a year in which Aqua Security enjoyed a 65% increase in new business and a sizable amount of industry recognition. Among these accolades were inclusion in the Fortune Cyber 60 and listing among the Gartner Market Guide for Cloud-Native.

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Finovate Alums Raised More Than $307 Million in Q4; $1.2 Billion in 2023

Finovate Alums Raised More Than $307 Million in Q4; $1.2 Billion in 2023
By David Penn Posted on
Categories: Alumni News, Daily news, Funding, Fundings, Quarterly Funding

Finovate alums raised more than $1.2 billion in equity funding in 2023. The total funding for the year reflects the continued slowdown in fintech funding that began in 2022.

Previous Annual Comparisons

In the fourth quarter of 2023, eleven Finovate alums raised more than $307 million in equity funding. Note, however, that this sum does not include the equity portion of the investment secured by SumUp, for example. The quarterly total also does not include the investment received by Icon Solutions, the amount of which was undisclosed.

Previous Quarterly Comparisons

  • Q4 2022: More than $380 million raised by 15 alums
  • Q4 2021: More than $1.2 billion raised by seven alums
  • Q4 2020: More than $472 million raised by 17 alums
  • Q4 2019: More than $876 million raised by 21 alums
  • Q4 2018: More than $800 million raised by 19 alums

Nevertheless, the fourth quarter alumni fundraising total approximates that of both last year’s Q4 and the final quarter of 2020.

Top Quarterly Equity Investments

  • Adlumin: $70 million
  • Paysend: $65 million
  • Scalable Capital: $64.7 million

Three investments in the fourth quarter of 2023 stood out among the others: Adlumin, Paysend, and Scalable Capital all announced fundraisings of more than $60 million in Q4. Also noteworthy was the $40 million raised by Stash in October.

Combined, the top three quarterly equity investments from our alums represent more than 65% of the total alum funding haul for Q4 2023.

Here is our detailed alum funding report for Q4 2023.

October 2023: $68 million raised by three alums

November 2023: $145 million raised by three alums

December 2023: More than $94 million raised by five alums

If you are a Finovate alum that raised money in the fourth quarter of 2023, and do not see your company listed, please drop us a note at research@finovate.com. We would love to share the good news! Funding received prior to becoming an alum not included.

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Meniga Lands $16.5 Million to Drive New Strategy

Meniga Lands $16.5 Million to Drive New Strategy
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Funding, Meniga
  • Meniga has raised $16.5 million (€15 million) in Series D funding, bringing its total raised to $60.5 million (€55 million).
  • The round will be used to fuel the company’s new strategy that focuses on creating hyper-personalized insights and enabling payments capabilities that leverage open finance ecosystems for financial services companies.
  • Meniga is pursuing the new strategy after appointing Raj Soni as new CEO earlier this year.

Personal finance solutions fintech Meniga has landed $16.5 million (€15 million) in Series D funding.

Today’s round boosts the U.K.-based company’s total funding to $60.5 million (€55 million). Contributors include major European banks, Groupe BPCE and Crédito Agrícola, Omega ehf, and several existing shareholders.

Just as notable as the investment is what the funds will be used for. Meniga plans to use the round to fuel the company’s new strategy that focuses on creating data enrichment and hyper-personalized insights for financial services companies. Meniga will also shift to emphasize enabling payments capabilities that leverage open banking and open finance ecosystems for financial services firms.

The new strategy hatched after the company appointed Raj Soni as the new CEO earlier this year. Soni’s aim to simplify Meniga’s product portfolio, diversify into verticals beyond banks, target new customers in emerging markets, and create new operational hubs to drive growth and offer customer support.

“We are looking forward to seeing [Meniga’s] continued focus on enrichment as well as personalized insights,” said Groupe BPCE Chief Digital Officer Emmanuel Puga Pereira. “These capabilities are critical for all BPCE banks to effectively engage with their end users and we have seen firsthand how Meniga’s solution is a key component for banks to succeed.”

Meniga notes that part of today’s funding will also be used for clearing the company’s debt, which will make Meniga almost debt-free.

Founded in 2009, Meniga empowers digital banking experiences for 10 million end users and serves more than 100 million banking customers across 30 countries in Europe, North America, the Middle East and Asia. Among the company’s clients are UOB, UniCredit, Groupe BPCE, Crédito Agrícola, Swedbank, and Commercial Bank of Dubai.

Meniga is among many fintechs and financial services firms that are shifting their focus to operate in the new open finance economy, where accessibility, data-driven insights, and personalized experiences reign supreme. Meniga’s strategic pivot underscores the industry-wide recognition that open banking and open finance will transform financial services for the better. It also sets a precedent for customer-centric developments going forward into 2024.

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Icon Solutions Lands New Investment from Citi

Icon Solutions Lands New Investment from Citi
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Funding, Icon Solutions
  • Icon Solutions received a strategic investment from Citi Treasury and Trade Solutions.
  • The amount of the recent investment, as well as the amount of the company’s 2020 funding round, are undisclosed.
  • Citi Treasury and Trade Solutions also announced it will expand its use of Icon Solutions’ Icon Payments Framework (IPF) to enhance its ecosystem.

Payments technology and consultancy services company Icon Solutions recently announced it received a new funding installment from Citi Treasury and Trade Solutions (TTS).

This marks Icon Solutions’ second funding round since it was founded in 2009. Prior to this round, the company received a Corporate Round in 2020 that was led by JP Morgan Chase. The amounts of both today’s round and the company’s 2020 round were undisclosed.

Citi TTS holds banking licenses in over 90 countries and manages a global network with membership in over 270 clearing systems. Clients use Citi TTS to make payments in 145 currencies. As a key part of today’s partnership, Citi TTS will expand its use of the Icon Payments Framework (IPF) to enhance this ecosystem. Icon Solutions’ IPF is a low-code based framework that enables banks to develop their own payment processing solution.

“We are on a journey to unlock the full potential of the Citi network and respond to the need for a streamlined and efficient payment processing system,” said Citi TTS Head of Payments Debopama Sen. “Through this relationship, we are removing platform complexity across our multiple products by following a process of ‘de-platforming’ common business services and creating reusable and extensible services that can be orchestrated using the IPF framework.”

Part of this “de-platforming” will help Citi remain flexible and accelerate its ability to respond to changes in infrastructure, regulation, and evolving customer expectations. “Our new approach will empower our engineering teams to respond quicker and more efficiently to industry developments, such as ISO 20022, and deliver high-quality innovation and functionality for our clients,” Sen added.

Icon Solutions delivers payment and technology solutions to banks and financial services organizations across the globe, including BNP Paribas, Lloyds Banking Group, Nationwide, and HSBC. The company’s payments platform, IPF, is used by Tier 1 banks to help them accelerate their payments transformation and roll out instant payments around the world.

Photo by Declan Sun on Unsplash

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SumUp Scores $306 Million in Equity and Debt to Power Global Expansion

SumUp Scores $306 Million in Equity and Debt to Power Global Expansion
By David Penn Posted on
Categories: Alumni News, Daily news, Funding, SumUp
  • SumUp has raised $306 million (€285 million) in combined equity and debt funding.
  • The round was led by Sixth Street Growth. Bain Capital Tech Opportunities, Fin Capital, and Liquidity Capital also participated in the investment.
  • The funding round does not change SumUp’s valuation which, as of June 2022, stood at $8.5 billion (€8 billion).

London-based fintech SumUp has secured $306 million (€285 million) in growth funding. The round was led by Sixth Street Growth and featured participation from Bain Capital Tech Opportunities, Fin Capital, and Liquidity Capital. The company will use the funding, which includes a combination of equity and debt, to support international expansion.

The round reportedly does not change the company’s most recent June 2022 valuation of $8.5 billion (€8 billion). It follows SumUp’s announcement of a $100 million credit facility from Victory Park Capital earlier this year.

In a statement, SumUp CFO Hermione McKee credited the merchants on the company’s platform – more than four million strong – for the company’s growth. “(It) is a direct result of the success of the traders we serve and would not be possible without the unwavering trust and support of the investor community,” McKee said. “This funding gives us additional firepower to pursue growth opportunities and accelerate products that empower small businesses.”

Founded in 2012, SumUp provides businesses of all sizes with affordable payment products and financial services. The company won Best of Show in its Finovate debut at FinovateEurope in 2013, and has since grown into a major payment solutions and point of sale systems provider active in 36 markets around the world. These markets include Australia, where SumUp launched in August.

More recently, the company introduced Tap to Pay on iPhone for SumUp customers in both the U.K. and the Netherlands. This enables SumUp merchants to accept all types of contactless payments using only an iPhone and the SumUp iOS app. No additional hardware is required. SumUp sees the offering as ideal for new and smaller merchants looking to potentially scale their businesses and broaden payment options for customers. SumUp Senior Strategic Growth Manager Giovanni Barbieri underscored the technology’s ability to support financial inclusion. “I am especially pleased with the exceptional functionality of the product and the fact (that) it lowers barriers to entry, with the potential to fuel entrepreneurship.”

This spring, SumUp launched its multi-product subscription offering, SumUp One. The new solution amalgamates the company’s product suite in a single, unified solution for merchants. SumUp One initially launched in Italy and the U.K.

Photo by Humphrey Muleba

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Scalable Capital Raises $64.7 Million

Scalable Capital Raises $64.7 Million
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Funding, Scalable Capital
  • Scalable Capital received $64.7 million (€60 million) in a venture round led by Balderton Capital.
  • The new funds boost Scalable Capital’s total funding to $352 million (€326 million).
  • Scalable Capital is facing new competition, with U.S.-based stock brokerage app Robinhood entering the market this fall.

Digital investment platform Scalable Capital landed some capital of its own this week. The broker and roboadvisor announced it received $64.7 million (€60 million) in a venture round led by Balderton Capital.

The round, which saw participation from HV Capital’s new growth fund and existing investors, is an extension of the company’s 2021 Series E fund. Today’s investment boosts Scalable Capital’s Series E Round to $227 million (€210 million) and brings its total funds to $352 million (€326 million).

According to TechCrunch, Scalable Capital’s valuation with the new round sits at $1.4 billion, the same valuation the company held at its 2021 Series E round.

The Germany-based company will use today’s investment to grow its investment platform and to “capitalize on its position as a leading provider of easy and cost effective investing solutions for retail clients.”

Founded in 2014, Scalable Capital has a mission to empower everyone to become an investor. The company, which is active in Germany, Austria, France, Italy, the Netherlands, Spain, and the UK., has 600,000+ users who currently hold $17.3 billion (€16 billion) in stocks, ETFs, derivatives, bonds, commodities and crypto on its platform. The fintech’s cost for brokerage range from free to $5.39 (€4.99) per month. For users who prefer an automated approach, Scalable Capital also has a roboadvisor offering that has a varied fee structure based on the client’s holdings.

Earlier this year, Scalable Capital launched Credit, a tool that offers users access to secured loans in the Scalable Brokerage product. Residents of Germany can buy additional securities or withdraw a personal loan without having to liquidate existing positions.

As part of today’s fundng announcement, Balderton Capital General Partner Rana Yared will join Scalable Capital’s board. “Scalable’s one-stop, digital-first, wealth building and generating platform brings a suite of top-class financial products to individuals across Europe, and is unparalleled in the market. We’ve been impressed by Erik, Florian, and team’s vision and execution to date and are delighted to be supporting them in this next chapter.”

Scalable Capital recently began facing new competition in the European wealthtech market, as U.S. stock brokerage app Robinhood launched operations in the U.K. Today, the California-based company unveiled it will offer crypto trading for its European Union-based users.

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AML Specialist Refine Intelligence Raises $13 Million in Seed Funding to Fuel Global Growth

AML Specialist Refine Intelligence Raises $13 Million in Seed Funding to Fuel Global Growth
By David Penn Posted on
Categories: Alumni News, Daily news, Funding, Refine Intelligence
  • Financial crime and AML specialist Refine Intelligence has raised $13 million in funding.
  • The round was led by Glilot Capital Partners and Fin Capital. The capital will be used to fuel international expansion.
  • Refine Intelligence made its Finovate debut at FinovateEurope earlier this year in London.

Financial crime solution provider Refine Intelligence has secured an investment of $13 million. The funding round was led by Glilot Capital Partners of Tel Aviv, Israel, and FinCapital of San Francisco, California. Also participating in the round were SYN Ventures and Ground Up Ventures, among others. The company, which made its Finovate debut earlier this year at FinovateEurope in London, will use the capital to help fuel international expansion.

“Banks used to have a superpower: knowing their customers’ life stories so they could provide personalized financial service,” Refine Intelligence CEO Uri Rivner said. “With banking increasingly done online and a significant drop in face-to-face interactions, banks’ understanding of customer behavior is limited.”

To this end, Rivner explained, Refine Intelligence helps banks better identify the false alarms that can be inadvertently triggered by otherwise legitimate customer activity. This strategy of helping banks “catch the good guys,” as Refine Intelligence puts it, enables financial fraud teams to focus on truly suspicious behavior.

The list of transactions that most often trigger false alarms is fairly alarming in its own right. According to Refine Intelligence, 64% of all AML alerts come from just five scenarios: payments for cash-intensive workers, gift giving or receiving, automobile purchases or sales, and payment for construction projects. Devoting resources to the false alarms that plague these transactions is a time-consuming and inefficient process that Refine Intelligence helps eliminate for banks.

Founded in 2033, Refine Intelligence made its Finovate debut earlier this year at FinovateEurope in London. At the conference, the company demoed its Life Story Analytics solution. An anti-money laundering solution “designed for real life,” Life Story Analytics leverages AI to identify the “life story” behind any alert issued by the transaction monitoring system. The technology automatically explains the issue with the transaction in question to the fraud monitoring team. This enables teams to clear alerts faster, provide full explainability to regulators, lower caseload, and improve overall risk management. Refine Intelligence says the technology has produced a 90% reduction in time and resources devoted to managing alerts.

In addition to the company’s recent funding, Refine Intelligence was recognized this summer in the AI FinTech100. The roster highlights companies in financial services that are innovating in the field of AI.

Read our Finovate Global interview with Refine Intelligence CEO Uri Rivner. Long time fintech fans may recall that Uri Rivner previously founded behavioral biometrics company and Finovate alum, BioCatch.

Looking to demo your latest fintech innovation? Applications are now being accepted for demoing companies at FinovateEurope in London, February 27 and 28, 2024. Visit our FinovateEurope hub for more!

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Enfuce Lands $9.2 Million Investment

Enfuce Lands $9.2 Million Investment
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Funding
  • Enfuce closed a $9.2 million follow-on investment, adding to the $49 million it received in 2021.
  • Vitruvian Partners led the round, which saw contributions from existing investor Maki.vc and new contributor Visa.
  • Enfuce will use the funds to prepare for growth in the enterprise segment, as well as expand into more European markets.

Card issuing and payments processing innovator Enfuce recently announced it received a $9.2 million (€8.5 million) follow-on investment. The new funds are added to the Finnish company’s $49 million (€45 million) Series C round in 2021 and bring Enfuce’s total funding to $67 million (€62 million).

Leading today’s follow-on round is Vitruvian Partners. Existing investor Maki.vc, along with new contributor Visa, also participated.

Commenting on the new investor, Enfuce Co-founder and Co-CEO Monika Liikamaa said, “Visa’s trust isn’t just a validation of  our business, it’s a testament to our significant growth during challenging economic times. With Visa’s investment, we will continue to bring our bold vision of shaping the future of embedded finance to life.” Enfuce Co-founder and Co-CEO Denise Johansson added, “This investment represents more than mere financial backing for us. It’s the continuation of an extensive and productive partnership between Visa and Enfuce.”

Enfuce was founded in 2016 with the intent to offer a cloud-based processing system that could allow any business to start issuing payment cards. In addition to payment card issuing, the company also offers digital wallets, fraud and dispute managements, card program analytics, and more. Enfuce processes $2.2 billion (nearly €2 billion) in transactions annually for clients including Pleo, OKQ8 and Memo Bank.

Enfuce will use today’s follow-on investment to prepare for its next area of growth, the enterprise segment. Additionally, the company plans to expand across European markets including Benelux, Germany, and France.

The rise in banking-as-a-service (BaaS) tools, such as the ones provided by Enfuce, offers businesses across a range of industries access to financial infrastructure. Integrating financial services into non-financial platforms not only enhances the customer experience but it also offers businesses new revenue streams. As we enter into 2024, BaaS and embedded finance solutions are set to rise. However, as regulators begin to take notice and find new risk factors, adoption of this trend will likely be cautious.

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Founders Series: Five Conversations on Funding Strategies for Fintech Startups

Founders Series: Five Conversations on Funding Strategies for Fintech Startups
By David Penn Posted on
Categories: Funding, Interview

The Fintech Founders series, presented by our sister publication Fintech Futures, features fintech and financial services veterans sharing their insights and experiences on a range of topics important to businesses in our industry.

Today we share five conversations on fintech funding featuring our panel our fintech experts. As part of our Funding Series of discussions, our panelists talk about issues such as: bootstrapping versus external funding, finding the right investment partners, the importance of producing significant growth, as well as tips for entrepreneurs and surprises our panelists encountered in their own journeys in fintech and financial services.

Our Fintech Founders panelists:

Our five conversations:

Acquiring Funding – Bootstrapping vs External

Ideal Investors – Finding the Right Partnership

Funding Strategy – Producing Significant Growth

Tips & Surprises – From Founder’s Experiences

Rewind & Fast Forward – Managing & Predicting

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International Money Transfer Company Paysend Raises $65 Million in Funding

International Money Transfer Company Paysend Raises $65 Million in Funding
By David Penn Posted on
Categories: Alumni News, Daily news, Funding, PaySend
  • Money transfer company Paysend has raised $65 million in funding. The round featured a strategic investment from partner Mastercard.
  • The investment adds to Paysend’s $125 million Series B round, which closed in 2021.
  • Paysend made its Finovate debut at FinovateEurope in London in 2016.

International money transfer company Paysend has secured $65 million in funding. The round included a strategic investment from Mastercard, which announced a partnership with Paysend earlier this year. That alliance helped enhance cross-border payments for SMEs by way of its Open Payments Network (OPN).

Existing investors Infravia Growth Capital, One Peak, and Hermes GPE Innovation Fund also participated in the round. This week’s investment follows the company’s $125 million Series B round, which closed in 2021.

A Finovate alum since its debut at FinovateEurope in London in 2016, Paysend provides fund transfers to more than 170 countries. The company’s platform ensures transparency by displaying currency rates, transfer fees, and the receivable amount before each transfer. Paysend users can make transfers via bank cards, accounts, and even mobile numbers. Money transfers are certified by Visa, Mastercard, China UnionPay, and are PCI DSS certified, as well.

“This significant investment is a testament to the strength of Paysend’s vision,” Paysend CEO and co-founder Ronnie Millar said, “to build the best-in-class cross border solutions for businesses and consumers, making money transfer simple for everyone.”

Paysend’s funding news comes just days after the company announced a partnership with CalQRisk. The company offers a governance, risk management, and compliance (GRC) solution that Paysend will use to enhance its current risk management processes. In October, Paysend teamed up with fellow Finovate alum Western Union. This partnership provided Western Union customers with a new direct to card payout option.

Paysend is headquartered in London, U.K. The company entered the Israeli market this summer after partnering with Israel-based fintech Okoora.

Photo by Luis Quintero

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Canadian Fintech Peloton Technologies Secures $2 Million in Seed Funding

Canadian Fintech Peloton Technologies Secures $2 Million in Seed Funding
By David Penn Posted on
Categories: Daily news, Funding
  • Canadian fintech Peloton Technologies has raised CAD $2 million in seed funding.
  • The funds will help the company meet its growth objectives. The investment also serves as a “precursor” to a “larger capital raise” next year.
  • Founded in 2011, Peloton Technologies offers a platform that enables small businesses to simplify payment workflows.

Victoria, Canada-based fintech Peloton Technologies has landed $1.5 million (CAD $2 million) in seed funding. The investment will help fuel the company’s growth as it seeks to simplify payment workflows for small and medium-sized businesses.

Peloton did not disclose the names of the investors. The company did say that members of the investing team have joined Peloton Technologies’ advisory board. The seed funding comes four months after the company secured $1.5 million (CAD $2 million) from the Pacific Economic Development Agency of Canada (PacifiCan). The funding from PacifiCan was the second investment Peloton received from the agency. The company picked up CAD $500,000 in funding from PacifiCan’s Business Scale Up and Productivity (BSP) program in 2022 ($367k in today’s dollars).

“We’re thrilled with the response from the Private Investor community,” Peloton Technologies Executive Chair of the Board John MacKinlay said. “We have a world-class group of investors with deep background in payments, banking, risk management, compliance, accounting, IT architecture, and securities law.” MacKinlay added that the funding will also help Peloton Technologies execute its acquisition strategy; last month, Peloton announced the acquisition of KIS Payments, an ISO (Independent Sales Organization). MacKinlay also noted that this week’s fundraising was a “precursor” to a “larger capital raise” slated for the first half of 2024.

“We’ve spent a lot of time creating the most comprehensive solution for businesses and now it’s time to scale,” CEO Craig Attiwill said when the company acquired KIS Payments in October.

Founded in 2011, Peloton Technologies helps small and medium-sized businesses in Canada process payments, execute fund transfers, exchange currencies, and store payment data. Its platform also supports the integration of multiple payment methods across multiple financial institutions. Peloton’s proprietary technology ensures the secure storage of payment data, document management, email/SMS notifications, and scheduling, as well as providing a sophisticated rules engine.

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