Affiniti, a fintech startup founded by 20-year-old Aaron Bai and 22-year-old Sahil Phadnis, has successfully raised $17 million in a Series A funding round led by SignalFire. This new investment comes on the heels of the company’s recently announced $11 million seed round, which closed only six months ago. That’s a testament to the company’s strong growth and their innovative solutions tailored for small and medium-sized businesses (SMBs) especially.
Affiniti is focused on delivering customizable, expense-management credit cards and software specifically designed for SMBs. HerCash provides personalized cash-back rewards that meet the unique needs of women. It produces native QuickBooks “qbo” files, simplifying the financial reconciliation processes for businesses. Affiniti lets businesses pledge their invoices to get paid quickly through short term loans of up to 90 days.
In its first 14 months, Affiniti was able to onboard an estimated 1,800 clients, with a monthly transaction volume of about $20 million. The firm has seen phenomenal growth and become a powerhouse in the rapidly booming fintech arena. That success landed it a round of initial seed funding and a follow-on Series A investment.
High-profile investors participated in the Series A round such as Codie Sanchez’s Contrarian Thinking Capital. Joining this thrilling funding round were Yahya Mokhtarzada, founder of TrueBill, and Austin Rief, founder of Morning Brew. Affiniti recently closed a $15 million debt facility led by Horizon Technology Finance. As the company continues to scale, this amount may increase up to $50 million.
We’re not out here to eat every mom and pop in small business America,” said Sahil Phadnis. Our approach is laser-focused. Affiniti has taken a decidedly surgical approach to its offerings. This approach has proven successful in helping them forge a lasting niche in an increasingly competitive market.
Phadnis reflected on the company’s rapid growth trajectory, noting, “12 months ago, we were at a million dollars. So 10x is a lot.” This exponential increase in revenue underscores the effectiveness of Affiniti’s strategies and its appeal to SMBs seeking more efficient financial management solutions.
Aaron Bai expressed confidence in Affiniti’s product development, stating, “V3, in our opinion, is a fintech product that can actually advise the end users and give them analytics.” This vision for continuous improvement has Affiniti well-poised to not only serve the changing needs of its clients, but trend toward high-growth, continuous improvement.
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