Finzly, a provider of payments infrastructure for financial institutions, announced that it has closed a Series A funding round of $10M with TZP Growth Equity.
The funding from the investment round will be used to accelerate Finzly’s expansion “as it continues to meet the growing needs of financial institutions for digital transformation.”
Finzly is the firm focued on domestic and international payments, “providing the next generation of infrastructure that simplifies back-office operations and the end-user experience for financial institutions by consolidating all payment rails into a single platform, creating the first ‘payments core’.”
Finzly was the first to offer “an API connection to FedNow, the new instant payment service introduced this year by the Federal Reserve.”
Banks are currently dealing “with various systems and vendors for payment infrastructure, leading to disjointed and complicated payment experiences for end-users.”
Using Finzly’s payment infrastructure, banks realize “reduced operating expenses from the platform’s ability to deliver high automation rates (up to 100% straight-through processing).”
The bank’s customers enjoy “a friction-free user experience to send and receive payments.”
Finzly was founded in 2012 by Booshan Rengachari, who has “built the company as a “bootstrapped” organization that has been profitable throughout its history.”
“Throughout Finzly’s history, we have carefully invested in disciplined and organic future growth by developing products and solutions that deliver value to our customers by simplifying their operations. This capital raise will enable us to further invest in our product roadmap built around the theme of providing real-time financial services demanded by today’s real-time economy, scaling our product delivery to maintain our high customer satisfaction rate.”
Shamit Mehta, TZP’s lead partner on the investment, who will join Finzly’s board of directors, said:
“We envision Finzly as a catalyst in the transition towards more agile and customer-centric banking experiences. Finzly is well-positioned to drive significant advancements in how banking and financial services operate and will become a category-defining company.”
Finzly has become the trusted partner for many banks by delivering futureproof technology solutions to support their digital transformation initiatives. In 2023, the company won five industry awards, including NACHA’s Best Parallel Core Technology, Global BankTech’s Best PaaS Provider of the Year, the PayTech Award for Best Payments Solution for Banks, and highly commended PayTech awards for leadership and future technology.
Shamit Mehta led the transaction “for TZP with support from George Philipose.”
Goodwin Procter LLP and McGuireWoods, LLP “provided legal counsel to TZP and the Company, respectively. Shamit Mehta will join the board as part of the transaction.”