The company, which provides technology to banks and financial institutions, has raised $99 million at a valuation of 1B +, according to a company press release. The round was led by investment firm Growth, founded by former executives of Goldman Sachs and Bank of America Merrill Lynch. Barclays joined the round, as did a number of other private equity firms and venture capital firms.
The round comes after the Chicago start-up secretly raised $58 million in a Series B round in March. The latest financing brings Atount’s total capital to $243 million, and the online lender, which has raised more than $600 million in equity, is scheduled to spin off in January 2020. It is noteworthy that the investment comes on top of the $86 million raised in the Series C round led by Goldman Sachs and Growth.
Simply put, Amount’s mission is to help financial institutions become digital to compete with fintech rivals. The company was founded shortly after the outbreak of the pandemic and therefore offers all kinds of technology.
As we have seen, demand for this type of technology has grown exponentially in recent years, owing to the rapid growth of the financial sector and the spread of digital currencies.
The 400-strong company develops business software specifically to accelerate the digital transformation of financial institutions. Chief executive Adam Hughes said Amount will be spun off from Avant to “provide enterprise software specifically for the banking industry. We are working with banks and financial institutions to rapidly digitize their financial infrastructure and compete rapidly in retail banking, “Hughes told TechCrunch. The aim is “to provide institutions with the opportunity to pay later, buy now and provide the ability to leverage the verification and analysis capabilities of amounts while competing rapidly in retail banking.
Barclays US Consumer Bank was one of the first major banks to recently offer an option for installment payments that allows merchants to make payments using Amount technology as white label payments. Banco Santander, Bank of America, Citigroup, JPMorgan Chase, Wells Fargo and Citibank are, of course, among the ten banks that are using Amount technology to facilitate the transition to digital financial services.
Hughes, the former president and COO of Avant, told TechCrunch that the pandemic has dramatically accelerated the need to digitize the bank’s retail lending experience and offer additional purchase options as e-commerce has gained in importance. These partnerships can bring market advantages worldwide, but banks face significant disruptive risks from fintech competitors.
He also stressed that the forced digital rollout of the pandemic has changed consumers’ digital expectations, as bank branches are closing and more goods and services are being bought online. Quantity delivers the retail experience through a combination of online, mobile and mobile – centered banking and financial services. In total, financial institutions manage and serve more than $1.5 trillion in assets, and $2.4 trillion in assets in the US alone, and more than $3 trillion worldwide, according to the company.
Hughes declined to give details on the company’s financial results, saying only that the group is doing well as a stand-alone company and that it expects to significantly outperform that group by 2020. Menge wants to use its new capital to further accelerate research and development and to invest in its technology and products.
We will also keep an eye on acquisitions and see an opportunity to bring interesting technology to the platform by tapping into this new asset class of acquisition opportunities that would allow us to add additional features to our platform, “Hughes told TechCrunch.
Avant itself made its first acquisition earlier this year with the acquisition of Zero Financial, TechCrunch reports. Kevin Marcus, a partner at WestCap, said he invested the fund in the company because he believed banks and other financial institutions had the ability to democratise access to traditional financial products by accelerating modernising efforts. Amount’s best products enable financial institutions to improve and enhance the banking experience of their end customers and maintain a decisive competitive advantage in this market.