Payment facilitation startup Tilled raises $11m Series A to provide PayFac-as-a-Service infrastructure to software companies

Payment facilitation startup Tilled raises $11m Series A to provide PayFac-as-a-Service infrastructure to software companies

Published: 26-05-2021 15:38:00 | By: Pie Kamau | hits: 904 | Tags:

PayFac-as-a-Service startup Tilled, announced the close of $11 million in Series A funding to empower software companies to monetize the payments flowing through their platforms.

With Tilled, software companies in the United States and Canada can begin to profit from the millions or billions of dollars in payments they are processing each year, with no startup costs or additional overhead, in just a matter of weeks. The round, which positions Tilled to become the category leader in the PayFac-as-a-Service space, is led by Rebecca Lynn from Canvas Ventures and joined by Abhinav Tiwari, former head of investments and M&A at Stripe, Henry Ward, founder and CEO at Carta, and existing Tilled investors including Abstract Ventures, Peterson Ventures, Clocktower Technology Group, and others.

Caleb Avery, Founder and CEO, Tilled: "As companies grow and scale, they are forced to look at alternatives and transition away from Stripe, Square and Braintree, but the options available to them are difficult, expensive and time-consuming to implement. Often, they also sacrifice customer experience in the process. Companies shouldn't have to choose between modern technology and competitive economics when it comes to choosing the right payment processing partner. With Tilled, software companies seeking an integrated payments partner no longer have to compromise. When you get Tilled, you get all the technological benefits of payment facilitation, as well as all the economic and branding benefits of becoming a registered PayFac, with no upfront costs or extra overhead. That's what PayFac-as-a-Service is all about."

Traditionally, software companies have few choices for processing payments on their platforms. Many start out with managed PayFac providers like Stripe, Square and Braintree, who offer easy-to-use APIs and instant onboarding, but at a high cost of 2.9 percent and 30 cents per transaction with no opportunity to benefit from those payments. As software companies grow and realize they could be profiting from those payments, their only options are to work with expensive PayFac-in-a-Box providers that can take months or even years to set up, or to sacrifice their customer experience with traditional credit card processing referral relationships.

Now, with Tilled, there's a new option. With easy-to-implement APIs and seamless merchant onboarding, Tilled provides the excellent customer experience software companies spend so much time designing for their own product and expect from their partners. At the same time, Tilled's revenue share, unparalleled in the industry, allows companies to begin profiting immediately from the payments being processed on their platform. Tilled offers transparent pricing, and software businesses can see how much they could benefit from Tilled using the Revenue Potential calculator.

Tilled welcomed Rebecca Lynn, Co-founder and general partner at Canvas Ventures, as well as Abhinav Tiwari, who has led investments and M&A at Stripe, Dell and Amazon to its board of directors. Lynn brings more than 20 years of fintech operating and investing experience to the board, and she works closely with early-stage founders to refine their product-market fit and expand their go-to-market strategy. Abhinav brings more than 15 years of experience in enterprise technology and financial services to Tilled. He led early-stage investments and acquisitions at Stripe to drive go-to-market acceleration, achieve product-market fit, and acquire localized payment infrastructure.

Rebecca Lynn, Co-founder and General Partner, Canvas Ventures: "Tilled has the opportunity to fully transform the payments ecosystem by allowing companies of all sizes, from small businesses to enterprise-level, to capture their own payments revenue. Through their PayFac-as-a-Service infrastructure, Tilled enables software companies to offer vertical payments, which ultimately opens up new revenue streams with little overhead and effort. I look forward to helping Caleb and the team navigate the exciting path ahead as Tilled redefines the PayFac landscape."

Abhinav Tiwari, former head of investments and M&A at Stripe: "Until now, monetizing payments came at a cost of either sacrificing significant economics for customer experience or undertaking the onerous, heavy lift of becoming a PayFac. Tilled is pioneering a new movement to help software companies build, own and monetize payments without having to deal with expensive customer and pricing trade offs."

As Tilled continues to grow and work with software companies around the country, the company is currently hiring across several divisions including sales, marketing, engineering, implementation and customer support. While company headquarters are based in Boulder, recently named the #1 Best Place to Live in the United Statesby U.S. News & World Report, the search is being conducted nationwide.