Bank transfer solution company Dwolla has closed a $12m funding round led by Foundry Group.
Other participants to the round included Union Square Ventures, Next Level Ventures, Ludlow Ventures, High Alpha, and Firebrand.
US-based Dwolla provides developers and organisations with bank transfer networks, helping to connect third-party applications with US banking infrastructure. The company supports real-time payments, bank transfers and tokenisation solutions.
The technology, which has KYC checks and bank account verification, offers customer and transaction management. Clients using the technology can receive a facilitator fee for all transactions, and integrate ACH transfers, wire transfers, mass payments, wallet-like functions and pre-approved payments on their app.
Capital from the round will be used to meet its growing demands, as well as expanding its team, according to the company’s CEO.
After reaching a deal earlier this year, Dwolla is powering identity verification and money transfer for Tanda, Yahoo!’s new social savings app.
Tanda is designed to help individuals achieve their financial goals without racking up more debt. Using Dwolla’s API, it will connect to the user’s bank to move money, store funds, validate their identity, and verify their bank account. Last year, Dwolla relaunched its API to offer a more ‘inclusive, white-labeled API’ that rolls in additional features such as a wallet functionality.
Last year, Dwolla netted a $6.85m round of funding co-led by Union Square Ventures and Foundry Group. Following the capital raise, Dwolla relaunched its API to offer a more ‘inclusive, white-labeled API’ that rolls in additional features such as a wallet functionality.
According to data by FinTech Global, the global infrastructure and enterprise software sector has seen a two-quarter decline in funding, having dropped from $1.9bn in Q2 2017 down to $747m in the last quarter. This fall in capital has been matched by a decline in deal volume.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
