Affiniti Secures $17M Series A Funding to Enhance Fintech Solutions for Small Businesses
Affiniti, an innovative fintech startup based in New York, has successfully raised US$17 million in a recent Series A funding round led by Signal Fire. This milestone comes just six months after the company secured an US$11 million seed round, as shared by the founders with TechCrunch.
Overview of Affiniti’s Funding and Growth
The Series A funding round also saw participation from various notable investors, including:
- Contrarian Thinking Capital
- Yahya Mokhtarzada of TrueBill
- Austin Rief of Morning Brew
Additionally, existing investors such as Indicator Ventures, LightShed Ventures, and RiverPark Ventures joined in on this round. Affiniti also secured a US$15 million debt facility that has the potential to expand to US$50 million.
What Affiniti Offers to Small Businesses
Affiniti specializes in developing expense management software tailored for small businesses, including:
- Pharmacies
- HVAC companies
- Auto dealerships
Some of the key features offered by Affiniti include:
- Customizable cashback rewards credit cards
- Seamless integration with QuickBooks
- Short-term loans against invoices
Positioning in the Fintech Landscape
While established companies like American Express and Capital One serve the small business sector, Affiniti is carving out a niche in what co-founder Aaron Bai describes as “v3 fintech.” This new wave of financial technology not only manages spending but also delivers valuable analytics and financial insights.
Future Plans and Market Strategy
Bai emphasized that many traditional small businesses lack dedicated finance teams, which creates an opportunity for Affiniti. The newly acquired capital will enable the company to enhance its offerings, including:
- Banking services
- Bill payment systems
- Cash flow analytics
- Integration with ERP and POS systems
Founders’ Journey and Company Growth
Founded by Aaron Bai, 20, and Sahil Phadnis, 22, while they were students at UC Berkeley, Affiniti has adopted a focused growth strategy by forming partnerships with industry trade groups. This approach has provided the company with early access to targeted verticals, enhancing its credibility among potential customers.
Since its inception, Affiniti has grown to serve 1,800 customers and processes approximately US$20 million in monthly transactions. The founders anticipate that this figure could reach an impressive US$1 billion annually by year-end, with Phadnis noting a remarkable revenue growth of tenfold over the past year. “Twelve months ago, we were at a million dollars,” he added.
For more insights on the latest fintech trends, visit Finextra.
