All-in-one payment platform run by minorities Stax reached unicorn status with a valuation of just over $1 billion after raising $245 million from Greater Sum Ventures, HarbourVest Partners and Blue Star Innovation Partners, according to a Press release Tuesday (March 8).
The investors will serve as strategic partners for Stax. Rob Wechslerfounder and CEO of Blue Star, will join Stax’s board of directors.
Founded in 2015 in Orlando, Florida by a brother and sister team Suneera MadhaniCEO and Sal RehmtullahPresident, the new funding and valuation status comes at a time when less than 3% of venture capital goes to minorities and less than 1% goes to companies led by CEOs of women of color, according to the statement.
See also: Stax buys automated surcharge platform CardX
“As a minority woman and FinTech executive, I am no stranger to discrimination and self-doubt,” Madhani said. “My brother and I started this business from our parents’ house in 2014. Since then, we’ve grown 500% over the past three years and processed over $23 billion in payments for 22,000 businesses around the world. nationwide. We share this milestone not just with our team, but with every person of color who is trying to jostle themselves, build their own businesses, and make history.
Stax said its latest funding and valuation is an example for other minority-run businesses trying to grow and build successful businesses. The new capital injection will be used to expand product capabilities, expand its customer offerings, grow its workforce and expand globally.
Read more: Stax Hires Payments Vet Menda Sims as Director of Payments
“At Stax, we help businesses grow and scale, while having the flexibility to adapt their payment technologies to meet the needs of their customers,” said Rehmetullah.
“With our new capital and unicorn status, we can ensure that our customers have all the tools they need to process and manage their payments. Businesses are just starting to realize how powerful payments can be in scaling their organization, and we’re here to make sure the process runs as smoothly as possible,” he said.
Stax (formerly Fattmerchant) offers one of the only all-in-one payment APIs in the industry and works with over 22,000 companies and software platforms. The startup has facilitated more than $23 billion in transactions and increased its international presence.
“Stax is a fast-growing company that is changing the way businesses make and schedule payments, which is why we chose to invest in them,” Wechsler said. “The COVID-19 pandemic has intensified the need for dynamic, flexible, and digital payment options from small businesses to enterprise organizations and the software companies that serve them. FinTech is changing fast and Stax is adapting just as fast, ensuring its customers can do the same.