Aeropay, a leading provider of Pay-By-Bank solutions for businesses, announced $20m in Series B financing.
The funding round was led by Los Angeles-based FinTech venture capital firm Group 11, with participation from Chicago Ventures and Continental Investment Partners.
The financing comes at a time when Aeropay has experienced tenfold revenue growth over the past year, now processing over $1bn in volume annually. Aeropay’s platform helps businesses move money faster, affordably and securely with its proprietary Pay-By-Bank technology, achieving cash-flow profitability in Q4 2023.
Aeropay’s platform seamlessly connects bank accounts using Aerosync, a homegrown bank aggregator. The platform supports customizable integrations via a full suite of open APIs, significantly benefiting businesses with industry-high approval rates while minimizing return and fraud risk.
Aeropay intends to use the new funding to develop new product offerings, enhance strategic partnerships, and explore greenfield opportunities. The company aims to expand its presence in new markets, including financial services, wellness, utilities, QSR, and property management.
Dovi Frances, founding partner of Group 11., said, “For years, we’ve searched for a company advanced enough to solve the pains and inefficiencies of the card payment market, arguably the last bastion of the traditional financial services industry. Aeropay has tackled the most complex technological and compliance challenges, making them the most likely player to seize upon this massive addressable market.”
Aeropay has become a leader in account-to-account (A2A) payment solutions through a “compliance-first” strategy focused on collaborating with banks, partners, and regulatory counterparts. The company initially succeeded in highly regulated industries and is now expanding into new markets.
Aeropay founder and CEO Daniel Muller, said, “Payments in most verticals operate on archaic systems filled with excessive fees and risks. We’ve built a bank-driven payments network that protects businesses against fraud, saves them money, and gives their customers an easy way to pay. Put simply, we are building the next-generation payments network.”
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