US payments fintech Stax has raised $245 million of funding and achieved a valuation of $1 billion.
Participating investors include Greater Sum Ventures, HarbourVest Partners and Blue Star Innovation Partners, whose founder and chief executive officer, Rob Wechsler, will join Stax’s board of directors.
The funding announcement and unicorn status follow a year of significant growth at Stax, which went on a three-company acquisition spree in 2021 that culminated in a deal for automated surcharging platform CardX.
The fintech currently serves more than 22,000 business customers and software platforms through an all-in-one API that enables them to operate their own payments systems.
Launched in 2014 by sibling co-founders Suneera Madhani and Sal Rehmetullah, Stax has grown 500% in the past three years and processed more than $23 billion in payments.
Commenting on the funding and Stax’s unicorn status, Madhani, the fintech’s chief executive officer, says: “As a minority woman and executive in fintech, I’m no stranger to discrimination and doubt.”
“We share this milestone not just with our team, but every person of colour trying to hustle, build their own business and make history.”
Rehmetullah, president of Stax, adds: “With our new capital and unicorn status, we can ensure our customers have all the tools they need to process and manage their payments.”