ModusBox Secures $7.5 Million in Series A Funding to Accelerate Innovation for Community Financial Institutions
Milestone investment led by Patamar Capital will be used to propel the company’s growth, scale product capabilities, and expand fintech partnerships, empowering IT modernization for financial institutions.
SEATTLE, WA – ModusBox, the infrastructure and integration technology company for financial services, today announced the close of a $7.5 million Series A investment. The round is led by Patamar Capital, a social impact fintech venture fund, and co-led by Choice Bank, a leading sponsor bank. BankTech Ventures and American Capital Partners also participated in the round.
ModusBox was founded in 2013 and took on the challenge to improve lives by accelerating universal access to reimagined financial services. The company developed PortX, the Integration-Platform-as-a-Service (iPaaS) for the financial services industry, and collaborated to build a new class of real-time payment networks as one of the founding members of the Mojaloop project. Today, PortX is an industry-leading technology for community financial institutions (CFIs) that unlocks access to banking core data, eliminates vendor dependencies, and creates simplified connectivity for the new wave of fintechs and real-time payment networks that are reshaping the global financial system.
The company will use the new funds to accelerate the development of its PortX products, drive key partnerships with advanced fintech solutions, and continue its contributions to the Mojaloop real-time payments ecosystem. The funds will also scale the company’s recruiting, marketing, customer success, and engineering groups as ModusBox responds to rapidly growing demand.
CFIs leverage PortX to scale their IT infrastructure and organizational capabilities in developed economies to compete with big banks and deliver modern financial services to their customers. In developing countries, millions of people rely daily on microfinance institutions and other small lenders to support their livelihood and thriving economies. These small financial institutions can utilize the suite of ModusBox-supported solutions to simplify connectivity to real-time payment systems and minimize the operational costs and technical challenges of participating in a modern national payments infrastructure.
“At Patamar Capital, we invest in generation-defining companies that unlock better economic opportunities for low-income communities across various industries, including financial services, SME digitization, education, healthcare, and agriculture,” said Geoff Woolley, Co-Founder and Partner of Patamar Capital. “ModusBox is a perfect fit for our portfolio because the PortX platform and Mojaloop support the underlying national-level infrastructure and the participating financial institutions that are connected. This two-pronged approach is vital to unlocking sustainable economic opportunities for individuals and small businesses in emerging economies.”
“Choice Bank is proud to have been a long-time customer and strategic partner of ModusBox,” said Tim Heilman, Chief Innovation Officer of Choice Bank. “We have observed firsthand the evolutionary progression of the PortX platform and were happy to partner with ModusBox as the sponsor bank for its ‘Fedwire-as-a-Service’ solution. Our partnership with ModusBox has allowed us to explore innovation and delivery of banking services in new ways and are excited by the possibilities of what this means for our customers. We are thrilled to join the round and continue partnering with ModusBox in its mission to serve the communities and people who don’t currently have access to banking services.”
“We’re eyewitnesses to the difficulties that community banks experience when trying to innovate and work with fintechs, especially as they have to navigate their core provider challenges and limitations,” said Carey Ransom, Managing Director at BankTech Ventures. “ModusBox is the ideal industry partner to ease integration effort, allow for re-use, and accelerate banks’ opportunities to build and launch new solutions for their customers. As the community bank ecosystem fund, BankTech Ventures believed that world-class integration capabilities was a key investment mandate for us, and we found ModusBox to be the clear leader. We’re excited by the opportunity to work with them, and we’ve already seen tremendous interest and support from our banks.”
“The global financial services industry is in the middle of a massive transformational shift fueled by unprecedented social behavioral changes, red hot consumer demand, and new technologies introduced daily,” said David Wexler, Founder and CEO of ModusBox. “We could not be more excited to partner with Patamar Capital, Choice Bank, BankTech Ventures, and ACP in this round. Our goal is to accelerate digital transformation for our CFI customers, enabling them to embrace the new era of open banking and embedded finance with the fintech partnerships and crypto solutions their customers want. Our investors share in our mission to facilitate financial inclusion and will play an instrumental role in helping us drive worldwide interoperability and participation in national-level real-time payment networks.”
ModusBox is the infrastructure and integration technology company focused on open banking solutions that unlock access to banking core data, eliminate vendor dependencies, and simplify connections to fintechs and real-time payment networks. Our PortX platform is the iPaaS (Integration-Platform-as-a-Service) built for financial services. It helps financial institutions empower their teams to connect to real-time payment networks like Zelle®, Mojaloop, ACH, Fedwire, and others. In addition, our solutions enable interoperability between online banking, credit checks, mortgage and loan applications, and other internal systems allowing for a timely and accurate view of customer data. For more information, please visit www.modusbox.com.
About Patamar Capital
Patamar Capital (“Patamar”) is a leading impact venture capital firm investing in early-stage technology companies to transform the lives of the emerging middle class. Patamar works with entrepreneurs to build sector-defining business models, drive economic impact, and generate top-tier financial returns. Patamar is founders’ trusted thought partner throughout their growth journey by fueling ambition, weathering tough times, and expanding across geographies. Patamar is currently investing out of Patamar Fund II and manages its Proof-of-Concept portfolio, Patamar Fund I, and the Investing in Women fund. Through these four funds, the management team has invested in more than 30 companies, many of which have grown quickly, scaled to reach large populations, and had financial success. For more information, please visit www.patamar.com.
About Choice Bank
Choice is more than just a bank. As a People First organization, we provide a wide array of innovative financial solutions to make banking and managing finances easily accessible from anywhere. Our People First approach led us to become a leading fintech sponsor bank delivering flexible and accessible online banking services, globally. We partner with fintechs that share Choice’s passion for serving our communities and those who do not have ready access to banking services. Established in 2001, Choice now exceeds $3 billion in assets and has been recognized as one of the fastest-growing banks in America. For more information, please visit www.bankwithchoice.com.