Episode six, a worldwide cost and banking infrastructure supplier, introduced as we speak that it has raised $48 million in a Sequence C financing spherical led by Avenir with participation from Anthos Capital. In an e-mail, CEO John Mitchell mentioned the tranche can be used to develop Episode Six’s go-to-market efforts and scale its enterprise as the corporate seeks to drive digital transformation journeys for banks and companies working within the funds house.
Episode Six was based in 2015 by Mitchell, Chermaine Hu and Futeh Kao. To get across the limitations of legacy cost expertise, the co-founders constructed a platform designed to streamline varied cost processes whereas decreasing prices.
“For CTOs and heads of product trying to develop their books and create aggressive merchandise, our platform allows them to shortly launch new merchandise to fulfill a buyer’s altering wants and seize market share,” Mitchell mentioned in an e-mail. e-mail interview to TechCrunch. “For CIOs searching for funds at scale with security, safety, reliability and cost-effectiveness, the platform offers a bank-grade funds infrastructure constructed by trade consultants.”
Episode Six affords a variety of various merchandise to handle particular, typical cost roadblocks. For instance, one in every of its purchasers, First Constancy Financial institution, used the platform to create a real-time cost system with card issuance and processing capabilities and fraud detection. One other shopper, TransPecos Banks, launched a bank card providing constructed on Episode Six’s infrastructure, whereas e-commerce checkout firm Montonio makes use of Episode Six’s expertise to allow bank card processing and acquisition.
“The burden of counting on outdated expertise continues to be a problem, particularly at a time when innovation is vital to profitable and retaining clients,” mentioned Mitchell. “This, coupled with the rising prices of utilizing legacy expertise, is why we’re seeing a major enhance in curiosity in our answer.”
In accordance with Mitchell, a rising variety of monetary establishments, particularly banks, try to modernize their tech stacks within the face of the growing adoption of digital funds. A latest examine by Finextra discovered it that 94% of banks are contemplating various ranges of funding in cost expertise over the following 24-36 months. Of these respondents, 65% plan a “vital” or “average” stage of funding in cost expertise over the identical interval.
In fact, there isn’t a lack of competitors in cost and banking infrastructure. Streamline, headquartered in San Francisco, not too long ago raised $4 million for its business-to-business-focused cost product suite. Kushki is a a lot greater participant – the Ecuadorian funds infrastructure start-up introduced in $100 million final yr at a valuation of $1.5 billion. Different rivals embody Pagos and Liquido, the latter of which goals to turn into the “Stripe of LatAm”.
Episode six, for its half, appears to be like sure to draw enterprise, with a presence in 38 nations and purchasers, together with the world’s 50 largest banks. Mitchell declined to reply questions on recurring income. However he mentioned the startup expects to develop to 200 staff by the top of the yr, up from 150 at present.
“Our robust dedication to long-term enterprise administration enabled us to resiliently navigate the challenges of the pandemic,” mentioned Mitchell. “We suffered much less because of this. As well as, we’ve got been sharply targeted on modernizing the cost and banking infrastructure from the beginning.”
To this point, Episode Six has raised roughly $100 million in enterprise capital.