Banking services Fintech Engage Fi is the latest local firm (in Tampa) to acquire out-of-state funding.
Engage Fi co-founders Jenn Addabbo and James Guild introduced their banking services technology business back in 2014. The firm has reportedly acquired one of the first investments from an $850 million private equity fund that is being managed by Charlotte, North Carolina’s Falfurrias Capital Partners.
The N.C. based private equity company has chosen a Tampa-based Fintech for one of the first investments from a fund that has been capped at $850 million, according to a report from the Tampa Bay Times.
Engage Fi, which creates and offers financial services for banking institutions and credit unions, has not revealed the exact amount of funds invested by Charlotte’s Falfurrias Capital Partners.
Company CEO Jenn Addabbo did not respond to questions asking about how much of a stake in Engage Fi Falfurrias has obtained, however, the investment did lead to the company onboarding three directors to solidify the firm’s five-person board.
The firm had reportedly vetted 10 equity firms for potential investments, Addabbo claimed, before deciding that they’d work with Falfurrias.
According to Addabbo:
“They have a tremendous amount of knowledge in the financial institution services space, and technology enablement, and they want to pour gasoline on the fire.”
Established in 2014, Engage Fi has expanded business operations via word-of-mouth, without relying on outside investments. In 2018, the company had ranked quite high on Inc.’s list of the 5,000 fast-growing and high potential private firms in the US. At present, the company maintains a workforce of 40 professionals and a customer base of over 160, which reportedly include Grow Financial, MidFlorida Credit Union, among others.
Addabbo also mentioned that the market opportunity for them “to continue to expand [their] services and their existing customer base and go after a new, larger market in community banks is significant.”
Falfurrias has secured $1.9 billion over five different funds, which includes the oversubscribed $850 million fund that is backing the Engage Fi investment.
Joe Price from Falfurrias (one of Engage Fi’s directors) told the Tampa Bay Times:
“Our partnership will help them create more capacity for future growth opportunities, including broadening their range of services, and customer targets, investing in technology, as well as possible strategic acquisitions.”
Addabbo further noted:
“It used to be, if you’re in Silicon Valley or Manhattan, there was a draw to it. I really feel like Tampa’s starting to get to that, which is really neat.”