ConnexPay, a PhocusWire Hot
25 Startup of 2020, has raised $20 million in Series B funding led by card issuing
platform Marqeta.
ConnexPay provides
payment gateway technology that combines a merchant acquiring and virtual card
issuing system for travel, marketplace and commerce intermediary companies,
processing billions in transaction volume.
Founded in 2017, ConnexPay
originally focused on the online travel industry. After the slowdown caused by COVID-19,
the company says it has now built its transaction volumes to above pre-pandemic
levels while also expanding into adjacent verticals of e-commerce and commerce
intermediaries. For 2022, ConnexPay is forecasting 5x growth in revenue.
“ConnexPay’s platform
solves for the complexity of marketplace and intermediary business models,
which have to deal with convoluted money flows and constant margin pressure. We
see a lot of possibilities around the optionality their platform provides for
payment acceptance, delivery and timing, offering innovators the ultimate
control over funds across multiple money movement rails,” says Renata Caine, senior
vice president of international, strategy and planning at Marqeta.
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“ConnexPay’s ability to
withstand the demands of COVID-19 in the travel vertical while growing and
expanding their business to new verticals is a testament to their team and
technology, and we’re excited for what’s in front of this company.”
ConnexPay will use the
investment to further build its business with online marketplaces and other
commerce intermediaries and to expand into Europe, including development to
support multiple currencies and languages.
“ConnexPay was founded
to transform the entire payments experience for the travel industry. We quickly
discovered that the value of the connected ecosystem – which offers controls
that resulted in reduced risk, improved cash flow, lowered the cost of
accepting cards and allowed for easier reconciliation – had much broader
application across many vertical markets,” says Robert Kaufman, founder and CEO
of ConnexPay.
“We’ve worked with
Marqeta as a customer since 2018 and we know the value and payments expertise
they bring to the table, so we’re excited about this new investment and what we
can accomplish with them in our corner.”
Marqeta also made an
investment in the company as part of its Series A in
2019. As part of this investment, Marqeta will have one seat on ConnexPay’s
board.
ConnexPay’s total
funding raised to date is $35 million.