Amount Raises $ 99 Million to Over $ 1 Billion Valuation to Help Banks Better Compete with Fintechs – TechCrunch
Rising, a company that supplies technology to banks and financial institutions, raised $ 99 million in a Series D funding round for a valuation of just over $ 1 billion.
West Cape, a private equity firm founded by ex-Airbnb and Blackstone CFO Laurence Tosi, led the round. Hanaco Ventures, Goldman Sachs, Invus Opportunities and Barclays Principal Investments also participated.
Notably, the investment comes just over five months after Amount raised $ 86 million in a Series C round led by Goldman Sachs Growth at a valuation of $ 686 million. (The initial increase was $ 81 million, but Barclays Principal Investments invested $ 5 million as part of a second Series C close). And this the turn came just three months after the startup quietly raised $ 58 million in a Series B round in March. The latest financing brings the total raised capital of Amount to $ 243 million since its split from Before – an online lender that raised over $ 600 million in equity – in January 2020.
So what kind of technology does Amount offer?
Simply put, Amount’s mission is to help financial institutions “go digital in months, not years” and thus better compete with fintech rivals. The company formed just before the pandemic struck. But as we’ve all seen, demand for the kind of technology Amount has developed has only grown exponentially this year and last year.
CEO Adam Hughes said Amount was built from Avant to provide enterprise software specifically designed for the banking industry. This partners with banks and financial institutions to “rapidly digitize their financial infrastructure and compete in retail loans and buy now, pay later sectorsHughes told TechCrunch.
Specifically, the 400-person company has built what it describes as “battle-tested” retail banking and point-of-sale technology that it says is accelerating the digital transformation of financial institutions. The goal is to give these institutions a means to deliver “a secure and transparent digital customer and merchant experience” that takes advantage of Amount’s verification and analysis capabilities.
HSBC, TD Bank, Regions, Banco Popular and Avant (of course) are among 10 banks that are using Amount’s technology in an effort to simplify their transition to digital financial services. Recently, Barclays US Consumer Bank became one of the first major banks to offer installment point-of-sale options, giving merchants the ability to make “white-label” point-of-sale payments under their own brand (using technology from Amount).
“The pandemic has dramatically accelerated banks’ interest in further digitizing the retail lending experience and offering additional financing options buy now, pay later with the rise of e-commerce, ”said Hughes, former President and COO at Avant, at TechCrunch. “Banks face significant disruption risk from fintech competitors, so an Amount partnership can deliver a world-class digital experience with significant market advantages. “
In addition, he points out, consumers’ digital expectations have changed due to forced digital adoption during the pandemic, with the closure of bank branches and stores, more banking transactions, and more goods and services being purchased in Canada. line.
Amount offers retail banking experiences through a variety of channels and a range of point-of-sale financing products, as well as features such as fraud prevention, verification, decision engines and account management.
Overall, Amount’s clients include financial institutions that collectively manage nearly $ 2 trillion in US assets and serve more than 50 million US customers, according to the company.
Hughes declined to provide details regarding the company’s finances, saying only that the amount “performed well ”as a stand-alone company in 2020 and that the company expects“ significant ”year-over-year revenue growth in 2021.
Amount plans to use its new capital to further accelerate R&D by investing in its technology and products. He is also considering some acquisitions.
“We are seeing a lot of exciting technologies that we could add to our platform to unlock new asset classes and acquisition opportunities that would allow us to bring additional functionality to our platform,” Hughes told TechCrunch.
Before itself made its first acquisition earlier this year by buying Zero Financial, news TechCrunch has covered here.
Kevin Marcus, partner at WestCap, said his company invested in Amount based on the belief that banks and other financial institutions have “a one-off opportunity to democratize access to traditional financial products by accelerating modernization efforts”.
“Amount is the market leader in fueling this change,” he said. “Through its best-in-class products, Amount enables financial institutions to improve and enhance the banking experience for their end customers and maintain a key competitive advantage in the market.