Relay, a digital banking platform for small businesses, has closed its Series A round on $19.4m in funding.
The round was led by Bain Capital Ventures, which supplied $15m to the round. Participation to the Series A also came from Better Tomorrow Ventures, Garage Capital, Tribe Capital, Panache and Amaranthine.
Funds from the round will be used to increase its customer acquisition, grow its engineering and product teams and further integrate its platform into the small business back office. Furthermore, the company will build robust workflows for bill payments, approvals, and reconciliation.
Relay has the goal of fully automating the finance function for small businesses through banking that deeply integrates into the back-office systems business owners. The company claims to be the first banking platform in the world to integrate AP automation directly into banking.
Its product claims to increase financial visibility and security, whilst reducing time spend on administration.
The FinTech company claims its services are used by thousands of businesses across the US as their primary operating account. It is on track to have processed $1bn worth of transactions by the end of 2021.
Relay co-founder and CEO Yoseph West said, “Eighty-two percent of businesses fail due to cash flow issues, and traditional banking doesn’t help — business banking is often confusing, expensive, and siloed from other systems.
“We’re building a challenger bank that helps businesses succeed by offering powerful tools to increase cash flow visibility and streamline time-consuming financial processes — in addition to being affordable and easy to use.”
The company previously raised $4.4m in its seed round, which was led by Better Tomorrow Ventures. Other commitments came from Garage Capital, Panache Ventures, Tribe Capital and Amaranthine.
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