Solid, rebranded from Wise in 2021, has raised $63 million in Series B round of funding to continue providing a fintech-as-a-service offering for companies looking to launch and scale their own fintech products.
The San Mateo-based company works with fintech and vertical SaaS companies and offers banking, payments, cards and cryptocurrency products through easy-to-integrate APIs.
We last profiled the company in 2020 before it changed its name and that was after taking both a $5.7 million seed and a $12 million Series A.
Arjun Thyagarajan, co-founder and CEO at Solid, told Technology Flow that the company has spent the last 18 months working on product-market fit with early customers.
He explained that traditional fintech infrastructure is not built for the modern company, and companies need dozens of point solutions and often spend millions in upfront and ongoing maintenance costs before launching an actual product.
Instead, by using APIs and a few lines of code, customers can embed fintech products and get them up and running quickly.
“Customers aren’t looking for UI/UX, but really for DI/DX, so that developer interface is self-service with a powerful dashboard,” he said. “We understand what they’re looking for — the demand for modern infrastructure. They work with banks, but they often don’t have the fintech experience or the tools to start with the building blocks.
It was at that time that they decided to rebrand as they solidified their business-to-business focus. The new solid name also resonated more with customers, Thiagarajan added.
In the past year, Solid has grown 10-fold in revenue, doubled its customers to 100 and become profitable. To date, the company has processed over $2 billion in transactions.
After being in a sort of stealth mode for the past 18 months, the company is now on track to get 100 customers, says Thyagarajan. To do so, he and co-founder Raghav Lal felt it was time to go for new funding. They started the process in May and closed the Series B in late July.
“We saw early signs of product market fit, so our thought process was to do a Series B when we were ready for hypergrowth, and now we had cash in the bank,” says Thyagarajan. “We’re going after the mid-market, so we’ve had to go back and fine-tune our product as we figure out what businesses need. The key is to build our technology from the ground up to own the complete experience so we can deliver what customers want.
FTV Capital led the new investment and was joined by existing investor Headline. To date, Solid has raised $80.7 million. Thyagarajan did not disclose the specific valuation with the new round, but revealed that it is 5 times higher than the solid Series A valuation.
The capital infusion will help accelerate the solid’s entry into some new verticals such as travel, logistics, construction, healthcare, education and the gig economy. The company is looking at where the money is moving and has identified 40 to 50 different verticals that are hindering how the money is moving, but they want to benefit their customers.
The company is also focusing on mid-market and large companies, which is another reason Thyagarajan says the investment is important.
“We are talking to Fortune 1000 companies and they feel more comfortable working with companies that have a strong balance sheet,” he added. “A lot of the work is under the radar, so we’re getting the brand and presenting ourselves as the ‘AWS of FinTech,’ a one-stop shop. Our goal is to be with them as a partner, not just a vendor.