Austin fintech Routefusion bags $3.6m with help of Plaid co-founder
Routefusion, an Austin-based cross-border payments start-up for businesses, has landed $3.6 million in seed funding.
Led by early-stage Texan VC Silverton Partners, the round also generated interest from William Hockey, Plaid’s co-founder. As well as San Francisco-based investors Initialized Capital and NextWorld Capital.
Founded in 2019 by Colton Seal and Richard Scappaticci, Routefusion claims to be the first “cross-border-payments-as-a-service” company founded by software engineers for software engineers.
The start-up’s application programme interface (API) currently serves challenger banks, payroll providers, platforms, and marketplaces. The fintech promises to get businesses up and running with borderless payments in “as quickly as two days”.
Current partners available through Routefusion’s include global payments provider AFEX, London-based foreign exchange provider MoneyCorp, and Singapore-based remittance fintech Nium.
“Historically, cross-border transactions involved vast, expansive teams to build out technology and partner relationships,” explains Seal.
“Our team is making cross-border payments as easy as a credit card payment.”
The fresh capital will largely go towards Routefusion’s self-serve product expansion and new global banking partnerships.
“A hidden gem”
Routefusion says it ended 2020 on nearly $40 million in transactions made by a client list which includes Jeeves, Synapse, Rippling, GrainChain, CardUp, and Headcount.
“We’re just getting started,” says Seal. “Our roadmap for 2021 includes executing nearly a dozen global partnerships, doubling headcount and continuing to provide superior customer service.”
Roger Chen, a partner at lead backer Silverton, will join Routefusion’s board of directors as part of his firm’s investment.
“For tech companies who want to offer international payments to their customers, Routefusion unlocks the ability to manage those payments at scale and change the game with their speed to market,” says Chen.
Andrew Lee, a partner at fellow backer Initialized Capital, has also taken a board seat at the start-up. He calls the firm “a hidden fintech gem”.
Lee adds: “In just a few short years, they’ve grown into a multi-million-dollar company with an impressive client roster.”
Craig Hanson, a general; partner at NextWorld Capital, has also bagged a board observer seat.