Productfy brought in a $2.35 million seed round to create a platform that enables non-bank companies to develop and launch their own fintech applications.
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Point72 Ventures led the round and was joined by Envestnet Yodlee Incubator. It gives Santa Clara-based Productfy total funds raised of approximately $2.4 million since the company was founded in 2018, according to Duy Vo, founder and CEO of Productfy.
The company is also now working with a group of partners, including card issuer Marqeta, financial data provider Yodlee, banking partner Avidia and Equifax, to expand its underlying framework to offer additional functions and capabilities. There are another two or three banks that Productfy will be signing on in the next two months, Vo told Crunchbase News.
“Up to this point, we have been providing technology-as-a-platform, but one of the things we needed to do is the ‘fin’ part,” Vo said. “Clients use the technology, but don’t know how to run other capabilities, such as compliance programs. Now with our partnership, we can offer a truly unified card issuance product.”
Prior to the seed round, the company was bootstrapped. With the new funds, Vo rounded out his leadership team in an effort to “build a repeatable playbook and turn it into a sales and marketing engine.” The company also will deepen existing partnerships and invest in product development.
Productfy will be opening up a beta program for fintech companies developing debit and credit card programs in early 2021, Vo said.
“We are getting ready to launch products from Equifax that we have been testing for the past couple of months,” he added. “We are also reinventing the developer experience. Our next iteration is going to be a use-case driven approach in a self-service type of way for people who know technology, but not the financial aspect.”
Fintech experts say all companies will become technology companies in the future. Productfy joins other startups focused on providing companies with tools to create in-house financial services. Recently, that included startups, such as Bloom Credit, which announced $13 million in Series A funding in October, and Finix, which closed a $75 million Series B in August.
Meanwhile, Dave Matter, operating partner at Point72 Ventures, said in a written statement that Productfy’s team is meeting the needs of companies, while also differentiating itself from other banking-as-a-service providers.
“They are not constrained by the limits of a partner bank’s core systems, which means they can support differentiated and innovative financial products,” Matter added. “As more and more businesses are looking to launch financial products, Productfy simplifies the process, making it easier for companies to provide financial services to diverse groups of consumers.”
Illustration: Li-Anne Dias
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