Episode Six, a worldwide funds and banking infrastructure supplier, at present introduced that it raised $48 million in a Series C funding spherical led by Avenir with participation from Anthos Capital. In an e mail, CEO John Mitchell stated that the tranche can be used to increase Episode Six’s go-to-market efforts and scale its enterprise as the corporate seems to be to drive digital transformation journeys for banks and corporations working throughout the funds house.
Episode Six was based in 2015 by Mitchell, Chermaine Hu and Futeh Kao. Seeking to overcome the restrictions of legacy funds tech, the co-founders constructed a platform designed to streamline varied payment processes whereas lowering prices.
“For CTOs and heads of product who want to grow their books and create competitive products, our platform allows them to launch new products quickly to meet a customer’s evolving needs and capture market share,” Mitchell advised Ztoog in an e mail interview. “For CIOs looking for payments at scale with safety, security, reliability and cost effectiveness, the platform delivers bank-grade payments’ infrastructure built by industry experts.”
Episode Six presents a variety of various merchandise to deal with particular, typical roadblocks in funds. For instance, one among its shoppers, First Fidelity Bank, used the platform to create a real-time funds system with card issuing and processing capabilities in addition to fraud detection. Another prospects, TransPecos Banks, launched a bank card providing constructed on prime of Episode Six’s infrastructure, whereas ecommerce checkout agency Montonio is tapping Episode Six’s tech to energy bank card processing and buying.
“The burden of relying on legacy technology continues to present challenges, especially at a time when innovation is key to winning and retaining customers,” Mitchell stated. “This, paired with the rising cost of operating legacy technology, is the reason we are seeing a significant increase in interest in our solution.”
To Mitchell’s level, a rising variety of monetary establishments, notably banks, are wanting to modernize their tech stacks in gentle of the rising adoption of digital funds. A current survey from Finextra discovered that 94% of banks are contemplating assorted ranges of funding in funds tech within the subsequent 24-36 months. Of these respondents, 65% plan a “significant” or “moderate” stage of funding in funds tech throughout the identical interval.
Of course, there’s no scarcity competitors within the funds and banking infrastructure house. Streamline, headquartered in San Francisco, not too long ago raised $4 million for its business-to-business-focused funds product suite. Kushki is a a lot bigger participant — the Ecuadorian funds infrastructure startup landed $100 million final yr at a $1.5 billion valuation. Other rivals embrace Pagos and Liquido, the later of which goals to change into the “Stripe of LatAm.”
Episode Six, for its half, definitely appears to be attracting enterprise, with a presence in 38 international locations and prospects together with the highest 50 world banks. Mitchell wouldn’t reply questions on recurring income. But he stated that the startup expects to develop to 200 staff by the top of the yr, up from 150 presently.
“Our strong commitment to long-term business management allowed us to navigate the challenges of the pandemic with resilience,” Mitchell stated. “As a result, we were less impacted. In addition, we have been laser-focused on modernizing payments and banking infrastructure from the very beginning.”
To date, Episode Six has raised round $100 million in enterprise capital.