Topics
Latest
AI
Amazon
Image Credits:Maskot(opens in a new window)/ Getty Images
Apps
Biotech & Health
clime
Image Credits:Maskot(opens in a new window)/ Getty Images
Cloud Computing
Commerce Department
Crypto
Image Credits:Solutions by Text
endeavour
EVs
Fintech
fund raise
Gadgets
back
Government & Policy
computer hardware
Layoffs
Media & Entertainment
Meta
Microsoft
Privacy
Robotics
Security
Social
blank
Startups
TikTok
transportation system
Venture
More from TechCrunch
Events
Startup Battlefield
StrictlyVC
Podcasts
video
Partner Content
TechCrunch Brand Studio
Crunchboard
reach Us
Solutions by Text , a caller that turn over citizenry a elbow room to pay their pecker and apply for loans via text electronic messaging , has secured $ 110 million in new growth financing .
Edison Partners and StepStone Group co - lead the equity portion of the raise while Stifel Venture Bank put up a lending facility , which made up less than 15 % of the total . The funding was a mix of main and secondary shares , according to CEO David Baxter .
Solutions by Text(SBT ) is not your distinctive startup raising capital . The caller was founded in 2008 by brothers Danny and Mike Cantrell , who bootstrapped it until 2021 when Edison Partners publish its first check into the company as part of a $ 35 million growth around .
Baxter took over as CEO in 2021 , and the brothers have drop dead and are no longer involved in the day - to - mean solar day military operation . Since its raise belatedly that year , Baxter enounce , SBT has seen its revenue increase by “ more than 3x ” though he correct to say what the base revenue was .
The company is currently EBITDA positive and is “ working toward profitability ” this year , according to Baxter . Over time , it has transition itself from a uptake model to a subscription business , with complete SaaS comprising about 90 % of business by year ’s ending .
“ We really have transformed the concern from more of a founder - led fellowship , lifestyle eccentric of a business , doing roughly 20ish million message a calendar month to about 150 to 200 million message a calendar month , ” he distinguish TechCrunch in an interview . In 2023 alone , SBT ’s messaging volume increased 95 % from the prior year , according to Baxter .
He would not disclose the company ’s current valuation , saying only that it was 5x from what it was at the time of its last raise .
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
As the company ’s name intimate , solution by Text provide conversational electronic messaging tools to business organisation that interact in real - time with customers via text . Its customers use it for everything from marketing to past - due appeal .
According toa enquiry reportby Solutions by Text and Datos Insights , many consumer — especially Gen Zers and millienials — said they ’d be unforced to compensate a flier within a textual matter substance .
“ About 98 % of text subject matter are opened and study in under five minutes . I look at my phone right now , I ’ve get four unanswered text message — and this is what I do for a living — but I have chiliad of unread emails , ” Baxter said , noting that SBT sees itself as “ an friend of the telecommunications industry . ”
Concerns over compliance have kept many fellowship from going the text message route . Baxter claim that 60 % of the company ’s new customers were not using textual matter messaging out of fear of violation over the last 12 months . The difficulty of compliancy has also draw some client engagement and messaging providers to exit the fiscal services sector , he said .
Solutions by Text , he lay claim , has the compliance piece nailed down through feature film such as provisioned short codes and long codes/10DLCs . Customers include Best Egg , eBay , US Bank , regional banking company from the Southeast and Midwest , a top 15 auto loan supplier and a digital marketplace lender , among others .
“ They ’re all find novel ways to pass along really in real time with their customers , ” Baxter say .
Last October , SBTformally introduce into theembedded payments blank , in partnership with Nuvei . SBT suppose its “ FinText ” production , among other things , allows consumers to make payments through textual matter - base response such as “ Pay Now . ” It also offers what the fellowship trace as a “ pre - vetted , carrier approved , message guide to secure submission with strict manufacture regulations . ”
The fellowship plan to use its raw capital toward mathematical product development , accelerate its mathematical product roadmap , some R&D , seeking acquisitions and labialize out and advertise on its AI offerings , harmonize to Baxter .
“ We believe that AI will allow for a fat experience . think a home where you could ego negociate your debt through AI , ” he enounce . “ grade of juvenile delinquency are on the ascension and we can help make a much safe means for people to self bring around their debt , or make a hope to pay in a series of defrayment , based on concern formula drive by AI . ”
Edison Partners General Partner and COO Kelly Ford secern TechCrunch that when she first invested in SBT two and a one-half years ago , she see “ a founder - led , capital - efficient business with a competitive moat that move deep on regulative and carrier compliancy and wide on fiscal industry solutions and third - party technology consolidation . ”
She added : “ We doubled down on the investment because the squad has overperformed on all mark and we ’re keen to go faster , peculiarly with payment . ”
Want more fintech news in your inbox ? bless up for TechCrunch Fintechhere .
Want to make out with a wind ? e-mail me at maryann@techcrunch.com or send me a message on Signal at 408.204.3036 . you’re able to also send a note to the whole TechCrunch bunch at tips@techcrunch.com . For more inviolable communications , get across here to contact us , which includes SecureDrop ( instructions here ) and link up to encrypted messaging apps .
