Canadian FinTech company FlexPay has raised $6m in a new funding round led by Impression Ventures, the venture capital firm.
“We believe FlexPay to be the best-in-class solution in a massively underserved market,” said Maor Amar, managing partner at Impression Ventures. “The company’s AI powered systems provide a solution to the large and rapidly growing problem of false credit card declines. FlexPay’s management team has an impressive entrepreneurial track record, in-depth knowledge of this market and the passion and energy required to succeed. We are thrilled to join them on this journey.”
A number of strategic partners as well as private equity firm BMO Capital Partners and angel investor network Anges Québec also participated in FlexPay’s round.
FlexPay’s claim to fame is an artificial intelligence and machine-learning-based system to help merchants recover lost revenues from declined transactions.
According to the startup, this is a service merchants sorely need as credit card issuers report that 24% of recurring credit card transactions are falsely declined, costing online and telephone merchants $300bn in lost sales and customers in the US alone.
“2019 was a year of significant in-roads,” said Darryl Hicks, CEO of FlexPay. “We surpassed the two million declines-processed mark and multiplied our integration points eight-fold, giving us access to a pool of $4bn in annual declines, 40,000 merchants and 80 million end-customers. The next logical step was to invite venture partners to join us and add their capital and expertise to accelerate us to help billions of end-customers get their transactions approved.”
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