Half of US small businesses operate with just 27 days of cash buffer. Relay says that its banking platform gives them tools to extend their runway. Specifically, Relay gives cash flow clarity to small businesses (SMBs). And now it has closed a $32.2m Series B financing round, led by Bain Capital Ventures. This brings Relay’s total funding to $51.6m. The new financing accelerates Relay’s product development in spend management, smart credit products and a financial API marketplace. It is, says Relay, the next step toward its overarching goal of delivering AI-powered predictive cash flow analytics to SMBs.
Relay revenues rise close to six-fold in 2023
The funding comes after consecutive years of outsized growth. Relay’s revenues rose 3x in 2022 and close to 6x in 2023.
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“68% of U.S. small business owners have cash flow problems. They worry about making payroll and mission-critical bills. But they lack the tools to truly address these existential threats,” said Yoseph West, Relay’s Co-Founder and CEO.
“Relay gives them cash flow clarity and control. It’s what SMBs need to sustainably fuel everyday operations, pairing financial services with software, making banking work harder for them.”
The funding round includes previous Relay investors BTV, Garage, and Tapestry, with new participation from Industry Ventures. “Relay’s been on an incredible trajectory, even as others in the industry have had to pivot and find new footing,” said Kevin Zhang, Partner at Bain Capital Ventures. We were eager to get behind Relay again as the company enters its next stage of growth and doubles down on the unique needs of the SMB market.”
Relay taps into the ingrained money management behaviours of business owners. SMBs want to see what they’ve earmarked for different expenses and understand their cash position at a glance. That is what Relay delivers.
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By GlobalDataOn average, business owners log into Relay 13 times per month. 40% of customers who use Relay for their primary banking log in daily. The company most recently launched a credit card in limited release. This complements its smart current and savings accounts, and a line of credit is planned.
