Today, Austin fintech startup Vyze announced another $13.1 million in venture capital, following last year's $13 million funding round.
Austin Ventures led the Series C round, which now puts the company’s total capital raised to $48 million since its launch in 2008. Last year’s round was also led by the local VC, and as part of today’s deal, Vyze welcomes Ken DeAngelis, co-founder and general partner at Austin Ventures, to its board of directors.
“We’re seeing significant traction for our multi-sided technology platform that connects lenders, retailers and consumers,” said CEO Keith Nealon. “It’s a clear win for everyone in a tough retail landscape. Retailers gain access to multiple credit solutions to better serve all their customers and drive continuous growth — and lending partners reach consumers they could never reach otherwise. Most importantly, consumers gain access to new purchasing power when they need it most."
Fathom Capital and Starvest Partners also participated in the funding round.
Vyze’s cloud-based solutions make it easier for retailers to offer financing payment options to their consumers with higher credit approval rates. The company reported more than doubling its client base over the past year while increasing the finance volume through its solution by 700 percent.
Vyze partners with more than 2,000 stores throughout the country, and it continues to grow the number of lenders available for credit and loan options. Nealon said Vyze’s platform strengthens retailers’ approval rates upward of 80 percent.
“Vyze is bringing much needed innovation to the retail financing market with a platform that optimizes the entire industry, similar to a service like Airbnb in the lodging industry,” said Austin Ventures' Chris Pacitti in a statement. “Building out this type of optimization for a marketplace is not a trivial task, but Vyze is now at the point where network effects are starting to yield the exponential growth promised by the model.”
The funding will be used to expand the 45-odd person team by another 20 heads.
“Vyze is now at a tipping point where we have a robust supply of both lenders and retail partners,” said Nealon. “This new round of financing will support our increased growth, and we are actively hiring Austin talent in technology, sales and marketing, and research and innovation.”
Image provided by company website.
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