Lendflow, an Austin-based software startup, has raised $10.8 million in Series A funding to allow any organization to become a fintech company.
The funding round, which was led by Underscore VC, brings the total funding raised by the startup to over $13 million. Uncorrelated Ventures, Y Combinator, 2048 Ventures, Knoll Ventures, I2BF, Hack VC, and Navitas Capital also participated in the round. Chris Gardner, Partner at Underscore VC, said about the firm’s participation:
“High performing teams that narrow focus on their specified areas of expertise are interesting to us as they get traction quickly and grow in a sustainable, managed way. That’s why we’re excited to back the team at Lendflow. They understand their customers deeply, and have the insight and know-how to deliver an integrated platform on which these companies can build to deepen relationships with their customers, and offer customized services that would otherwise have to be outsourced to banks that don’t have the intimate, industry knowledge to make these relationships consistently successful.”
Lendflow was founded in 2019 to provide companies to launch their own lending products, effectively allowing them to operate like a fintech company by using the startup’s white label solution. Ever since, vertical SaaS companies have been able to build financial products that can later be offered to small and medium businesses while providing a better and more personalized user experience and support. Jon Fry, CEO at Lendflow, referred to this approach by stating:
“The idea of contextual lending isn’t new; in-market lending services have existed for some time, but historically, it took a tremendous amount of effort and time for a product or service provider to become a lender. We’ve built a platform on which software companies can quickly launch financial products tailored to their audience. This promotes higher user engagement, increases revenue per user, and decreases churn. We’re excited to execute alongside new partners, including Underscore VC, as they’re deeply committed to the vertical SaaS space, and that added expertise will be crucial as we enter this next phase of growth.”
With the fintech industry continuing to evolve and grow as millions of people and organizations worldwide continue to move away from traditional financial platforms, offering companies to run their own financial solutions could be a game-changer. Lendflow believes that by offering such an opportunity it can help boost innovation by opening access to new financial possibilities.