Payment-tech startup Tilled raises $12.5M
BOULDER — Tilled Inc., a Boulder payment-facilitation technology company, recently completed a $12.5 million investment round, bringing its five-year fundraising haul to nearly $40 million.
The company said it “plans to use the funds to scale up sales and marketing to support its explosive growth — currently experiencing 550%+ (year-over-year) revenue growth.”
The most-recent fundraising round was led by Canvas Ventures and UPC Capital Ventures.
Tilled is developing a platform for companies seeking to become “payment facilitators,” or a middle-man between a buyer and seller. Banks and credit card companies have traditionally operated in this space before tech upstarts like Square Inc. (NYSE: SQ) built platforms that provided faster integration.
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Currently, payment facilitators fall into two categories. One is “managed facilitators” that take care of all the operational requirements for their merchants such as monitoring for fraud and settlements closing correctly, but with strict rules on how much revenue their merchants can gain from facilitating the sale. The other category is “PayFac-In-A-Box,” or a service that allows enterprise-size companies to build their own payments systems and keep more revenue but at the cost of having to do its own compliance.
Tilled recently inked a partnership with payment-solutions platform NorthAB LLC.
“Over the past year, Tilled has been honored to partner with some of the most prominent organizations in payments, delivering our turnkey PayFac-as-a-Service solution under their brands to elevate their customer offerings,” Tilled CEO Caleb Avery said in a prepared statement. “Building on the momentum of our exciting partnership with North announced this week, this new funding empowers us to double down on our mission. We’ll be expanding our collaborations with leading payment companies worldwide to create innovative programs that seamlessly integrate Tilled’s cutting-edge technology with our partners’ vast distribution channels. Together, we’re setting a new standard in the payments industry.”