PayEngine announced securing $10m in Series A funding round
By Joy Dumasia
PayEngine, a white-label payments-facilitation platform for vertical SaaS companies, has raised $10 million in Series A funding led by Point72 Ventures, a global venture capital strategy. Leading capital equity firms Mucker Capital, BAM Ventures and K5 Global also participate in the investment. PayEngine will use the funding to grow its team, expand access to clientele, develop more financial product offerings within its platform and shore up its international support.
Spartak Buniatyan, Founder and CEO of PayEngine, said: “Our mission has always been to give clients full control of their payment processing by allowing them to move this function in-house. With this round of funding, PayEngine can continue to add value to our current product line and expand our service line to improve operating performance and mitigate risk.”
The PayEngine platform can increase annual recurring revenue (ARR) by an average of 30% since it allows businesses to set their own merchant rates to retain the majority of their profit while eliminating the merchant-of-record liability and implementation complexities that are traditionally associated with other payment facilitation models. As a custom label offering, the platform can be branded for client use and integrated alongside a company’s other core software products in a matter of days.
Adam Carson, Operating Partner at Point72 Ventures, said: “Software companies have the opportunity to generate additional revenue from payments flowing through their platforms, but most lack the resources or desire to become a payment facilitator (PayFac) given the complexity and resources required. PayEngine is a PayFac-as-a-service platform that enables software companies to monetize the payments flowing through their platforms quickly and easily.”
PayEngine’s platform helps SaaS companies across a range of verticals, including home services, automotive, construction, healthcare, and transportation, improve their payments monetization strategies while mitigating Merchant of Record (MOR) liabilities and data security and compliance issues.
“It is gratifying to know that Point72 Ventures and our other funding partners see the disruptive potential of PayEngine’s product line,” Buniatyan said. “This Series A support will allow us to improve the customer experience, provide more innovative services and expand our access to clientele that have been historically underserved or ignored.”
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