Butter, which has built a payments technology to fix payment failures, has secured $22m in its Series A funding round,
US-based growth equity firm Norwest Venture Partners served as the lead investor. Existing Butter investor Atomic joined the round, alongside Transpose Platform and Spring Tide Capital.
Butter stated that accidental churn is the single leading cause of subscription churn and results in $500bn in lost revenue on account of false declines per year. These declines are caused by an attempt to combat fraud. Many companies are unaware this is even a problem, and those that know of the issue have no idea how to fix it.
The best way to solve the problem is to parse through the metadata in real-time to make decisions on which transactions should be authorised. Most firms do not have this capability, Butter said.
As a solution to the challenge, Butter has created the Recovery engine. This is powered by machine learning and automates the decisions in real-time.
It said, “Every company in the world that transacts digitally is losing revenue to accidental churn. These organisations each stand to add at least five points to top line revenue. Our vision is to help every e-commerce business on the planet realise this growth. It’s an ambitious goal, but one we firmly stand behind – after all, we’re already delivering this value and more to the customers we serve today.”
The company offers a free Payment Health Analysis. This provides companies with insights on current payment success, opportunities for improvement and project actual and attainable ARR.
In other PayTech news, Canadian payments company Nuvei acquired US-based Paya in an all-cash deal worth $1.3bn. Paya processes annual payment volume across credit and debit card, ACH and cheques.
Earlier this week, Singapore-based B2B BNPL player actyv.ai collected $12m in its pre-Series A funding round, as it explores global expansion efforts.
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