Finix Lands $75 Million To Strengthen Payments Infrastructure

Finix has received $75 million in Series C funding. Acrew Capital led this round, with help from Citi Ventures. Leap Global and Lightspeed Venture Partners also contributed in the funding round. New investors like Citi Ventures and Tribeca Venture Partners joined, along with old investors like Homebrew, Cap Table Coalition, Inspired Capital, and Insight Partners.

The company wants to develope new products and this investment will enable it to achieve this goal.  Finix has been steadily competing with Stripe, which handles payments for millions of businesses. For years, Finix helped companies set up their payment systems. However, in 2023, the company officially became a payment processor, like Stripe. Now, Finix is getting ready for its biggest challenge against the fintech giant.

Finix’s Revenue Grew Four Times In The Last Year

In an interview, Richie Serna, the Chief Executive Officer and founder of Finix, said becoming a payment processor was a major milestone for the company. He said this milestone was the reason for the $75 million they raised recently. When Serna started Finix, he thought of it as a company that helped others with payments. But now, Finix has changed its focus.

Serna said Finix’s money has grown four times over the last year, though he did not say how many businesses they help now. In 2022, Finix helped over 12,000 businesses. He said Finix closed more deals in 2024 than ever before, so Finix may now help more than 24,000 businesses.

Even though Finix is growing, it is still smaller than Stripe. Stripe is a big competitor. Sequoia Capital, a well-known company, led Finix’s $35 million funding in 2020. But later, the firm left the deal because it also supported Stripe. Finix kept the money but lost Sequoia as a backer.

Serna said many people think Stripe controls most of the market, especially in Silicon Valley. But he explained Stripe only controls 6% of the US market and less than 2% worldwide. He added that 91% of payments still use old systems from the 1980s and 1990s.

Finix Aims To Grow Its Team And Expand Into More Countries

While Stripe and Finix are similar in some ways, both offering payment processing services and operating in Canada and the United States, Serna said Finix is building products specifically for businesses with both in-store and online sales.

He reported that there are millions of such companies in the US that do not have the developers to build payment systems. To meet their needs, Finix provides more options for physical payments and works with several payment devices.

Serna also highlighted that Finix offers more visibility in its pricing. Stripe charges a flat fee of 2.9% plus 30 cents per transaction, but it is not always clear what customers are paying for. On the other hand, Finix uses a “cost-plus” model, showing customers what they are paying for and the company’s markup.

With the new investment, Finix plans to grow its team beyond the 130 employees it currently has and expand into more countries. The company’s goal is to gain a bigger share of the US payments system.