Payments gateway ConnexPay has snared $20m from a Series B funding round headed by card issuing giant Marqeta.
The partnership between the two companies preceeded the funding round, with ConnexPay having been a Marqeta customer since 2018 and the latter having already invested in ConnexPay during its Series A round. Marqeta’s backing also marks its first corporate investment since going public in June this year.
Established in 2017, ConnexPay claims it transforms payment acceptance and issuance for online marketplaces, agencies and brokers in travel and ecommerce by connecting incoming payments from customers directly with the outgoing payments to suppliers.
The company currently has a high projected growth trajectory and is forecasting 5x growth in revenue next year.
According to ConnexPay, it intends to use this investment to build out its business with online marketplaces and other commerce intermediaries that make up a significant portion of its current sales pipeline.
The firm will also use the money to expand its platform into Europe with bolstered hiring and technology development to support multiple currencies and languages.
ConnexPay CEO and founder Robert Kaufman said, “ConnexPay was founded to transform the entire payments experience for the travel industry. We quickly discovered that the value of the connected ecosystem – which offers controls that resulted in reduced risk, improved cash flow, lowered the cost of accepting cards and allowed for easier reconciliation – had much broader application across many vertical markets.
“We’ve worked with Marqeta as a customer since 2018 and we know the value and payments expertise they bring to the table, so we’re excited about this new investment and what we can accomplish with them in our corner.”
Marqeta SVP for international strategy and planning Reneta Caine added, “ConnexPay’s platform solves for the complexity of marketplace and intermediary business models, which have to deal with convoluted money flows and constant margin pressure. We see a lot of possibilities around the optionality their platform provides for payment acceptance, delivery and timing, offering innovators the ultimate control over funds across multiple money movement rails. ConnexPay’s ability to withstand the demands of COVID-19 in the travel vertical while growing and expanding their business to new verticals is a testament to their team and technology and we’re excited for what’s in front of this company.”
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