Retailers often build their own “orchestration” platforms for payment processing and routing, but these can be complex to maintain. Spreedly plays in this space, and, last year, new startup Gr4vy launched in the U.S. to do this in an even more fleet-of-foot manner, it claimed.
It raised an $11.1 million Series A last year to do that, but today it’s unveiled a further $15 million in Series A extension funding, led by March Capital, taking its total Series A stage funding to $27.2 million (including previous seed funding). The company claims this has now meant a doubling of its valuation to $115 million.
The San Mateo-based startup also attracted participation from Nyca Partners, Activant Capital and Plug and Play Ventures.
Unusually for orchestration platforms, Gr4vy’s cloud-native payment orchestration platform (POP) also offers Instances, which provides merchants infrastructure in the cloud. It now has partnerships with GoCardless, Banked and Akoova.
John Lunn, founder and CEO of Gr4vy told me: “The pandemic has made things difficult but has also been a massive opportunity because everything went online. A lot of companies and retailers’ systems weren't prepared or fit for purpose. They went from processing 5% of their transactions online, and everything else in-store, to suddenly 100% online. So I think there's been a huge advantage to the acceleration of digital partially caused by the pandemic.”
McKinsey projects that by 2025 global payments revenue will reach roughly $2.5 trillion, and by 2024 e-commerce retail sales are expected to account for 21.8% of all retail sales worldwide.
Solomon Hailu, partner of March Capital said: “Digital payments methods today come in more forms than ever before, resulting in merchants feeling overwhelmed… March is excited to partner with John and the Gr4vy team as they help merchants simplify and manage payment infrastructure via a cloud-native, easy-to-use, orchestration platform at a time when ecommerce strategy is mission-critical.”