Startup Solid Financial Technologies Inc. announced today that it has secured a $63 million funding round led by FTV Capital.
The Series B round also included participation from venture capital firm Headline, which led Solid’s previous Series A raise in October 2020. The startup’s valuation is now reportedly five times higher than at the time of the Series A investment.
Solid operates a cloud-based platform that makes it easy for companies to develop financial technology, or fintech, services like mobile banking apps. Additionally, the startup’s platform provides the ability to embed fintech capabilities into existing applications.
As part of its feature set, Solid offers tools that businesses can use to create consumer and business checking accounts for their users. A mobile banking startup, for example, could use Solid’s platform to power the account management section of its app interface. Solid’s platform also allows businesses to hold cryptocurrencies for users, as well as process digital asset transactions.
Along with its other capabilities, Solid’s platform offers the ability to issue payment credits. The platform can be used to issue credit, debit and prepaid cards displaying a company’s corporate branding. Solid also offers related features for managing tasks, such as setting spending limits.
Building a fintech service from scratch can take years because the process involves complex technical requirements, such as the need to implement extensive cybersecurity controls. According to Solid, its platform significantly speeds up the development process. The platform’s features can be accessed through application programming interfaces that can be integrated into an enterprise’s software with a limited amount of custom code.
Another task that Solid promises to make easier is software maintenance. Development of fintech services often requires the production of a significant amount of custom code that must be regularly updated as requirements change. Solid’s platform reduces the amount of custom code developers must write, which means there are fewer software components to maintain.
On the occasion of its latest round of financing, Solid revealed today that its number of clients and revenue have increased 10-fold over the last year. The startup did not share absolute revenue figures. However, it did detail that the combined value of transactions processed through its platform reached $2 billion in the last year.
“Solid is filling a real market need for modern fintech infrastructure, offering a best-in-class platform that spans technology, compliance and everything in between,” said Robert Anderson, partner at FTV Capital.
Solid says its platform powers more than 100 fintech projects for clients. To expand its customer base, the startup plans to establish a presence in more market segments, including construction, the informal economy, healthcare, and education.