The investment comes just months after the new startup quietly raised $58 million in a Series B round in March after being spun off from Avant at the beginning of the year. The latest financing brings the Chicago-based company’s total raised in 2020 to nearly $140 million. Existing backers August Capital, Invus Opportunities and Hanaco Ventures also participated in the Series C round, which gave Amount a $681 million valuation.
Put simply, Amount’s mission is to help financial institutions “go digital in months—not years.” The company formed just before the pandemic hit. But as we all know, demand for the type of technology Amount has developed has only gone up exponentially this year.
The 350-person company has built what it describes as “battle-tested” retail banking and point-of-sale technology that it claims accelerates digital transformation for financial institutions. The goal is to give FIs a way to offer “a secure and seamless digital customer and merchant experience” that leverages Amount’s verification and analytics capabilities.
FIs such as Banco Popular, HSBC, Regions Bank and TD Bank are just some of the banks that use Amount’s technology in an effort to simplify their transition to digital financial services. Overall, Amount clients include financial institutions collectively managing nearly $2 trillion in US assets and servicing more than 50 million U.S. customers, according to the company.
Amount CEO Adam Hughes said that banks are facing pressure to provide “world-class” origination and account management experiences to customers as well as buy-now-pay-later (BNPL) tools to merchant partners.
As such, he added, “banks need a proven platform for quickly going digital, delivering a seamless customer experience and driving growth without disruption.”
Amount delivers retail banking experiences via a variety of channels and a point-of-sale financing product suite alongside platform features such as fraud prevention, verification, decisioning engines, and account management.
COVID-19 has impacted Amount’s business by driving the demand for user-centered retail banking experiences in a post-pandemic environment, according to Hughes.
“During COVID-19, the branch banking model changed entirely, leaving banks responsible for accelerating digital growth in a condensed period of time,” he told FinLedger. “There has also been a significant increase in demand for buy now, pay later point-of-sale financing from consumers, banks, and merchants alike. As e-commerce continues to grow, we feel that banks can compete against the fintech challengers and win in that space by expanding their merchant relationships. We’re here to help empower that growth.”
Jade Mandel, a VP in Goldman Sachs’ growth equity platform – GS Growth – said that most banks are looking for resources and infrastructure to accelerate their digital strategy “and meet the demands of today’s consumer.”
“Amount enables banks to navigate digital transformation through its modular and mobile-first platform for financial products,” said Mandel, who will be joining the startup’s board.
The company plans to use the money primarily to invest in platform research and development and accelerate its go-to-market strategy.
For more context on Goldman Sachs’ recent strategy of investing in fintechs, check out our coverage here.