Amount Secures $99 Million in Series D Funding

Amount, a technology provider focused on the banking and financial services sectors, has successfully completed a Series D funding round, raising $99 million. This investment values the company at slightly more than $1 billion.

Investment Details

WestCap, a growth equity firm established by former Airbnb and Blackstone CFO Laurence Tosi, spearheaded the funding round. Additional participants included Hanaco Ventures, Goldman Sachs, Invus Opportunities, and Barclays Principal Investments.

This capital injection follows a previous $86 million Series C round secured just five months prior, led by Goldman Sachs Growth, which valued Amount at $686 million. A subsequent investment of $5 million from Barclays Principal Investments further augmented the Series C round.

Prior to this, the Chicago-based startup had raised $58 million in a Series B round in March. In total, Amount has now raised $243 million in funding since its inception in January 2020, following a spin-off from Avant.

Amount’s Core Technology

What does Amount’s technology entail? The company’s primary objective is to facilitate the rapid digital transformation of financial institutions, enabling them to effectively compete with emerging fintech companies.

Formed shortly before the onset of the pandemic, Amount’s solutions have experienced a surge in demand as the need for digital banking technologies has accelerated.

CEO Adam Hughes explains that Amount originated from Avant to deliver enterprise-level software specifically tailored for the banking industry. The company collaborates with banks and financial institutions to streamline their digital infrastructure and enhance their presence in the retail lending and buy now, pay later (BNPL) markets.

Digital Transformation Capabilities

Amount has developed what it describes as “battle-tested” retail banking and point-of-sale (POS) technology. This technology is designed to expedite the digital transformation process for financial institutions.

The aim is to empower these institutions to deliver a secure and seamless digital experience for both customers and merchants, leveraging Amount’s robust verification and analytics capabilities.

HSBC, TD Bank, Regions, Banco Popular, and Avant are among the ten banks currently utilizing Amount’s technology to simplify their transition to digital financial services.

Recently, Barclays US Consumer Bank became one of the first major banks to introduce installment POS options, allowing merchants to offer branded POS payments through Amount’s technology.

Responding to Market Shifts

“The pandemic significantly increased banks’ focus on digitizing the retail lending experience and expanding buy now, pay later options due to the growth of e-commerce,” Hughes stated. “Banks are facing considerable disruption from fintech competitors, and a partnership with Amount can provide a superior digital experience with substantial market advantages.”

He also noted that consumer expectations have evolved due to increased digital adoption during the pandemic, with more banking and purchases occurring online.

Comprehensive Banking Solutions

Amount provides a range of retail banking experiences through various channels, alongside a suite of point-of-sale financing products. Key features include fraud prevention, verification, decisioning engines, and account management tools.

The company’s clients collectively manage nearly $2 trillion in U.S. assets and serve over 50 million U.S. customers.

Future Plans and Financial Performance

Hughes refrained from disclosing specific financial details, stating only that Amount “performed well” as an independent entity in 2020 and anticipates “significant” year-over-year revenue growth in 2021.

The newly acquired capital will be allocated to accelerate research and development, focusing on enhancing the company’s technology and product offerings. Amount is also exploring potential acquisitions.

“We are identifying promising technologies that can be integrated into our platform to support new asset classes, and acquisition opportunities that would broaden our platform’s capabilities,” Hughes explained.

Avant itself recently completed an acquisition, acquiring Zero Financial.

Investor Perspective

Kevin Marcus, partner at WestCap, expressed his firm’s investment rationale, stating that banks and financial institutions have “a timely opportunity to broaden access to traditional financial products by accelerating modernization efforts.”

“Amount is leading this transformation,” he said. “With its leading-edge products, Amount empowers financial institutions to improve and enhance the banking experience for their customers and maintain a competitive edge in the market.”