Orum Secures $56M Funding to Accelerate Interbank Transfers

Orum Secures $56 Million in Series B Funding to Accelerate Money Transfers

Orum, a company focused on reducing the time required for interbank money transfers, has announced the successful completion of a $56 million Series B funding round. This latest investment aims to further develop and expand its capabilities in this crucial financial sector.

Investment Details and Previous Funding

The funding round was co-led by Accel and Canapi Ventures, with participation from existing investors including Bain Capital Ventures, Inspired Capital, Homebrew, Acrew, Primary, Clocktower, and Box Group. This financing follows a $21 million Series A round secured just three months prior, bringing the total funding raised by Orum to over $82 million.

Company Origins and Leadership

Orum was founded in 2019 by Stephany Kirkpatrick, following her tenure at LearnVest, a personal finance platform acquired by Northwestern Mutual in 2015 for approximately $375 million. Alexa von Tobel, founder of Inspired Capital, initially invested in Orum’s $5.2 million seed round last August, and also provided an early “inspiration check” to the company.

Addressing the Delays in Traditional Money Transfers

Kirkpatrick highlighted that many individuals are unaware of the complexities of the automated clearing house (ACH) system and the reasons for the multi-day delays often experienced when transferring funds. She emphasized the need for near-instantaneous money availability, stating, “It needs to be instant.”

Orum’s Core Mission and Technology

Orum’s central objective is to leverage machine learning-backed APIs to facilitate efficient money movement across various payment networks, ultimately promoting universal financial access. The technology underpinning this mission is complex, yet the goal remains straightforward.

Product Offerings: Foresight and Momentum

Orum launched its first embeddable product, Foresight, in September 2020. This API is designed to enable financial institutions to process money transfers in real time.

The platform utilizes both machine learning and data science to accurately predict fund availability and proactively identify potential risks. Furthermore, its Momentum product intelligently directs funds across different payment rails, supported by banking partners JPMorgan Chase and Silicon Valley Bank.

“They power the back end of our Momentum platform that allows the money to move on a multirail basis,” Kirkpatrick explained. “They power our access to real-time payments.”

Current Partnerships and Client Base

Orum currently serves a diverse range of enterprise partners, including Alloy, HM Bradley, First Horizon Bank, and Zero Financial, which was recently acquired by Avant.

Rapid Growth and Expansion

The company reports a 100% month-over-month increase in transaction volume, with much of its initial growth driven by positive word-of-mouth referrals.

Commitment to Diversity and Inclusion

Orum prioritizes diversity within its workforce and investor base. Currently, 48% of its 55 employees are female, and 48% identify as “nonwhite.” The company has also joined the Cap Table Coalition, dedicated to closing the racial wealth gap, and has allocated over 10% of its Series B funding to underrepresented founders.

This includes investments from groups like the Neythri Features Fund, which focuses on supporting South Asian women and diverse founding teams.

Industry Perspective from Canapi Ventures

Jeffrey Reitman, a partner at Canapi Ventures, whose limited partners primarily consist of banks, noted that these banks collectively process hundreds of millions of ACH transactions annually. He emphasized the need for a solution enabling instant fund transfers.

“Orum’s product paves the path for many players in financial services and fintech — and beyond — to partake in faster money movement without compromising key risk principles,” he stated.

Key Differentiators: Team and Data

Reitman highlighted Orum’s team as a major differentiator, describing them as “the best group of data scientists and engineers in the space.” He further noted that customers value the team’s ability to refine risk parameters for transactions by extracting valuable insights from historical data.

Additionally, Orum is actively building a comprehensive dataset focused on the risks associated with money movement, which will enhance its risk models and create a competitive advantage.

Accel’s Perspective on Orum’s Potential

Sameer Gandhi, a partner at Accel, who joined Orum’s board as part of the latest funding round, believes the company has developed “game-changing technology and an exceptional team” within an 18-month timeframe.

“Orum is tackling financial infrastructure from its foundation,” he concluded.

Note: The headline was updated after publication to reflect the accurate funding amount.