British Ryft Secures $7.3 Million in Series A Financing
British Fintech start-up Ryft has successfully raised $7.3 million in Series A financing, setting the stage for an expansion into new markets. Founded by seasoned entrepreneurs Sadra Hosseini and Alex Mackenzie, Ryft is poised to revolutionize the way multi-party payments are managed in the rapidly evolving landscape of what the founders term “Commerce 2.0”.
Understanding Commerce 2.0
“In Commerce 1.0, the process was straightforward—you sold a product and received payment,” explained Hosseini in an interview with Business Insider. “Now, in Commerce 2.0, a single transaction of £100 might need to be divided among various stakeholders including a driver, a restaurant, and the platform itself.” This complex payment structure necessitates innovative solutions to streamline transactions, a gap that Ryft aims to fill.
The Meaning Behind the Name
The name Ryft derives from the word “Rift”, symbolizing the division of payments. Hosseini mentions that this core concept is integral to the platform’s design and functionality. In addition to facilitating multi-party payments, Ryft offers compliance checks and integrates with existing systems in real-time, enhancing operational efficiency for businesses in various sectors.
Monetization Strategy
Ryft’s revenue model is built on charging transaction fees for the payments processed through its infrastructure. By partnering with banks, which handle credit and debit transactions, as well as various platforms, Ryft enables these entities to add their own margin on every transaction. In this model, Ryft benefits by capturing a share of these fees, while also providing a white-label solution for businesses to access and utilize its payment platform.
Strategic Growth and Expansion Plans
With locations in London and Manchester, Ryft has recently formed a partnership with Clearhaus, Denmark’s second-largest acquiring bank. This strategic collaboration is part of Ryft’s broader plan to bolster its presence in Europe. Hosseini has also disclosed intentions for a U.S. expansion in the third quarter of this year, indicating robust international growth strategies.
Investors and Funding Insights
The Series A funding round was spearheaded by Edenbase, with notable participation from GPOS Investments, British Business Bank, Pembroke VCT, SideByside, and Ingenii VC. Additionally, Ryft has gained support from U.S.-based leaders at PayPal, solidifying its financial backing for upcoming ventures.
Future Vision and Commitment
Hosseini emphasizes that the funds raised are not intended merely for survival; Ryft has already achieved break-even status. “This funding round is aimed at scaling our operations,” said Hosseini. “We are looking at international growth, increasing our talent pool, and launching omnichannel payment solutions.” The commitment to expansion and innovation is clear as Ryft positions itself at the forefront of the Fintech space.
For more details on how Ryft attracted this significant investment, you can explore Ryft’s comprehensive 16-page pitch deck, shared exclusively with Business Insider.