NYC-based card issuing platform for developers Lithic raised $60m in Series C funding, making the company a soonicorn.
The round, which brought total fundraising to $110m, was led by Stripes, with participation from Bessemer Venture Partners, Index Ventures, Exor, Rainfall, Tusk Venture Partners, and Commerce Ventures.
The new round of funding comes on the heels of its May 2021 Series B, when Lithic also officially launched its API developer platform.
The company intends to use the funds to continue to grow, help the team scale and expand the platform through strategic acquisitions to enhance the product and its core offerings. It will also bolster its team and expand upon its platform through acquisitions and broaden its reach internationally, especially in Canada.
Led by Bo Jiang, CEO and cofounder, Lithic provides an API platform for developers at startups and enterprises alike to quickly launch new debit and credit card programs. The company’s self-serve platform allows developers to optimize back-office operations and avoid the unnecessary administrative burdens. The new round of funding follows May 2021 Series B, when Lithic also officially launched its API developer platform.
Formerly known as Privacy, Lithic is comprised of more than 50 creators and its single-use credit cards were launched to thwart fraud prior to adding an enterprise offering. In an age of near-constant data breaches and cybersecurity threats, Lithic and the growing number of businesses creating virtual credit cards appeal to companies looking to prevent fraudulent use as well as the misuse of funds. In addition to preventing fraud, single-use virtual cards also help companies rein in control of employee spending when cards are created with a specific purchase in mind.
This time last year Lithic had issued 5 million virtual cards as compared to more than 10 million as of May. The company’s transaction volumes have increased fourfold since the start of 2021 to over $1bn in yearly processing volume. By year’s end, the company expects that number to jump to $2.5bn.
Jiang said, “Card issuing is undergoing a renaissance similar to what card acquiring underwent a decade ago. By building accessible infrastructure and lowering the barrier to entry for developers and startups to create credit and debit cards, we’re helping the next generation of companies to launch new financial services products faster and more cost effectively.”
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