Spiral, which claims to be a pioneer of ‘impact-as-a-service’, has secured $28m for its Series A round, as it looks to expand across the US.
The investment was led by Team8, with commitments also coming from Euclidean Capital and Intuition Fund, Communitas Capital, Phoenix and Nidoco.
The funds have been earmarked for the launch of Spiral’s impact-as-a-service platform. It will also help the FinTech expand its offering to over 10,000 financial institutions in the US, including banks, credit unions and FinTech companies.
Spiral claims it has built a first-of-its-kind platform that enables banks and other financial institutions to embed sustainability, social impact, ESG and CSR into their core businesses to empower millions of their customers to achieve daily impact and contribute to a better world.
Spiral was founded in 2019 by former Morgan Stanley managing director Shawn Melamed. Initially, Spiral was created to help people and nonprofits drive tangible environmental and social impact through everyday banking products.
It launched its first impact-driven product in 2021, a socially responsible consumer banking app. This grew to have over 65,000 customers and support over $65m in transactions within a year.
Melamed said, “After launching our own mission-driven consumer banking app and witnessing its rapid growth, we saw that rather than offering an independent banking app, the greatest value would be to partner with other financial institutions. We decided to make our technology accessible to help more people and businesses make an impact easily using their current banking and financial apps,”.
“We realised that our innovative impact products are game-changer differentiators for banks, credit unions, and financial institutions that want to lead the market and give back to their communities while increasing their revenues and expanding their customer base.”
Today, Spiral is a B2B business that provides its technology to all financial institutions. It helps clients increase revenue through higher engagement and increased spending with their cards and create socially responsible debit cards, credit cards, accounts, and payment products.
The platform handles back-office operations, donation processing, compliance, and technical integrations with charities. Through its technology banking customers can make an impact through everyday purchases, round-up card transactions, monthly charitable giving subscriptions, and tax-deductible donor-advised funds for long-term charitable giving.
In other ESG FinTech news, Climate tech investment marketplace HeavyFinance raised €3m in its seed funding round as it looks to bolster European growth.
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