Fintech company Finzly secures $10 million in Series A funding for its payment solutions infrastructure.
In a move that signifies a significant step forward for the payments industry, Finzly, a groundbreaking platform, has secured a $10 million Series A funding round, led by TZP Growth Equity. This investment comes on the heels of a previous Series A round in 2021, where Finzly was supported by SBI Holdings.
Booshan Rengachari, CEO and founder of Finzly, built the company out of inspiration he gained as Wachovia Bank's head of international when it was acquired by Wells Fargo. Rengachari discovered "so much technical debt that has grown at the banks over a period of time" during the merger and developed Finzly as an operating system with which banks can supplant their old mainframes.
Finzly claims to be the first true "payments core" on the market, consolidating all payment rails into a single platform, including FedNow, and offering an API connection to the new rail. This unique platform allows for the seamless integration of various banking services, setting Finzly apart from the competition.
One of the key factors that have contributed to Finzly's success is its profitability. According to Rengachari, Finzly has been profitable from year one. The company's focus with the new funding is on strategic growth, not blind growth at any cost. Rengachari plans to use the fresh $10 million in funding to develop the product roadmap, focusing on customer service and scaling the marketing and sales teams.
Rengachari's approach to Finzly's growth requires discipline. He emphasizes that Finzly makes good use of every dollar received for growth. TZP Partner Shamit Mehta stated that Finzly's innovative approach to creating flexible payments and banking solutions aligns with their vision of supporting companies that contribute to the evolution of the banking and financial sector. Mehta also highlighted Finzly's commitment to utilizing cutting-edge technology, which lowers the total cost of ownership and positions them as a true forward-thinking partner to their customers.
Finzly has been operating since 2012 and supplies back-office operations to banks including First Horizon, Synovus, and Metropolitan Commercial Bank. Rengachari states that Finzly has a good product and plans to make noise in the current market. Using Finzly's technology, banks can launch a new payment core or banking core in less than 10 minutes, according to Rengachari.
Rengachari started Finzly with the intention of making a difference. His decision to start the company was driven by a desire to streamline the payments industry and provide a cleaner place for banks to start, as it gives them a modern architecture to operate on. Rengachari's wife supported his decision to start Finzly, even though it meant a risk of losing savings. Despite the initial investment being a risk, Rengachari did not lose his savings.
In conclusion, Finzly's innovative approach, profitability, and commitment to utilizing cutting-edge technology have set the company apart in the payments industry. With the recent Series A funding, Finzly is poised to continue its growth and make a significant impact on the industry.
