Digital bank Oxygen announces $20m in funding and new CEO

Launched in 2020, Oxygen provides digital banking services to consumers and small businesses

Oxygen, a digital banking platform, has announced $20m in series B funding, led largely by return investors. 

San Francisco, US-based Oxygen will use the funds to increase investment in product development and user experience around its financial technology solutions, and to expand its workforce to meet growing demand. 

Launched in 2020, Oxygen provides digital banking services to consumers and small businesses.  

Some of its biggest investors include Y Combinator, 1984.vc and Possible Ventures.  

Oxygen also announced the appointment of David Rafalovsky as chief executive officer. 

He becomes a major equity shareholder and succeeds Hussein Ahmed, founder of Oxygen, in the role. Ahmed will remain with the company in the new role of chief product officer. 

Rafalovsky has 25 years of experience in banking, including roles at Sberbank and Citi. 

Outlining how small businesses will be a key client group of his tenure as chief executive officer, Rafalovsky commented: “I look forward to charting the path forward for the company, building world class solutions for small businesses and gig economy participants.   

“Not only are small businesses driving the US economy, but they also keep the American dream alive.   

“According to the US Small Business Association, small businesses of 500 employees or fewer make up 99.9% of all US businesses—Oxygen is planning to play a significant role enabling small businesses success.” 

On his replacement, Ahmed said: “As the company prepares to scale its operations and further accelerate growth, David’s legacy of success as a global leader and board member ensure the value of Oxygen’s technology will continue to inspire—and engage—customers and investors.” 

Image: Oxygen  

Josh Poyser Josh Poyser is an editor at FinTech Intel. He has written about fintech for several years and appeared at FinTech Connect 2023 on the 'Unlocking Success: The Art of Fintech PR' panel.