Ryft: Revolutionizing Payment Solutions for the Future of Commerce
Ryft, a cutting-edge startup founded by entrepreneurs Sadra Hosseini and Alex Mackenzie, is at the forefront of innovation in the payment solutions industry. The company provides an advanced platform designed for markets, booking applications, and food delivery services, streamlining multi-party payments within the evolving framework of what is termed “Commerce 2.0.”
Understanding Commerce 2.0
As explained by Hosseini, the concept of Commerce 2.0 represents a significant evolution in payment processes. “Commerce 1.0 was simple—you sold a product and received payment directly,” he stated in an interview with Business Insider. “Now, in Commerce 2.0, a single transaction might need to be divided among several parties, such as a driver, a restaurant, and a platform.” This shift highlights the complexity of modern transactions and the necessity for robust management tools.
The Meaning Behind the Name ‘Ryft’
The name “Ryft” is derived from the word “rift,” symbolizing separation which embodies the core functionality of the company’s services. According to Hosseini, Ryft’s platform not only facilitates payments but also ensures compliance checks and real-time integrations, crucial for businesses navigating the multifaceted landscape of today’s commerce.
Revenue Model and Financial Transactions
Ryft’s revenue model revolves around transaction fees collected on the payments processed through its infrastructure. The platform partners with banks—financial institutions responsible for handling debit and credit payments—allowing them to set their own margins on transactions. Ryft receives a portion of this margin and also develops an additional revenue stream by offering subscription-based access to its platform for businesses who seek to enhance their operational efficiency.
Recent Developments and Partnerships
Headquartered in London and Manchester, Ryft has recently formed a partnership with Clearhaus, Denmark’s second-largest acquiring bank. This collaboration is aimed at expanding Ryft’s reach and capabilities within the European market, illustrating the startup’s commitment to establishing a robust operational framework across key regions.
Funding and Future Growth
Ryft’s Series A funding round was spearheaded by Edenbase, with contributions from various investors including GPOS Investments, the British Business Bank, Pembroke VCT, SideByside, and Ingenii VC. The startup has also drawn interest from prominent American investors, particularly from PayPal. With these funds, Ryft is poised for significant growth, aiming for expansion into the European Union this quarter and the United States in the third quarter of the year.
Strategic Vision and Future Plans
Hosseini emphasizes that the funds raised will not merely serve to ensure the company’s survival, as Ryft has already achieved break-even status. Instead, this investment round is geared towards fueling international growth, increasing hiring initiatives, and launching omnichannel payment solutions to better serve their clients.
Explore the Pitch Deck
For a deeper insight into Ryft’s vision, check out their 16-page pitch deck, which was essential in securing $7.3 million in funding, or approximately €5.7 million, exclusively shared with Business Insider.