Finix continues to have a good year. Six months after announcing an initial $45 million Series B, the payments infrastructure company is coming back with a $30 million extension to close a $75 million round.
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Founded in 2016, San Francisco-based Finix has developed a payment processing infrastructure-as-a-service platform allowing startups to bring their e-commerce payments infrastructure in-house.
This service counters costly third-party partnerships, or burdensome “from scratch” mentalities, in which startups try to build an API on their own with engineering talent. Those methods can cost anywhere from $3 million to $5 million in upfront costs and take two to three years to complete.
Finix knows this timeline from experience.
“We are growing fast, but when we say it takes two to three years to build, it absolutely does because we did it,” said Richie Serna, Finix’s CEO, in an interview with Crunchbase News.
Serna phrases it as “enabling the new Stripe’s and Square’s” of the world, nodding to two behemoths which help businesses handle e-commerce payments. By becoming your own Stripe or Square, the processing fee goes to you instead of a middleman, Serna said.
After racking up an investor group over the past year that includes Bain Capital Ventures, Insight Partners, Visa, Sequoia Capital and Inspired Capital Partners, Finix’s latest investment was led by Lightspeed Venture Partners and American Express Ventures. Including the new funding, Finix has raised a total of $96 million since the company was founded, Serna said. We also reported on the company’s Series A round in July 2019.
The global digital payments industry is already a $4 trillion market and is expected to be $6.7 trillion in the next three years, according to data from LearnBonds.com. Meanwhile, Finix’s transaction volume grew 4.5 times from Q2 2019 to Q2 2020, and the company experienced over 450 percent year-over-year growth, Serna said.
Similar to its other rounds of funding, this new investment will enable Finix to double its team as it pursues a goal of turning all software companies into payment companies, he added.
As for next steps, Finix will continue to stay focused as it scales.
“We want to set ourselves up with a strong foundation,” Serna said. “Think about other technology-enabled paradigm shifts, for example, the impact of the internet, mobile and cloud. They’re ubiquitous and therefore expected. We take them for granted. We believe financial services, especially payments, will be the next ubiquitous paradigm shift. This is exactly the time for us to double down.”
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