Payment automation startup, MineralTree Inc has raised $11.1 Mn in a Series B round of funding from First Data and existing investors including Fidelity Growth Partners & .406 Ventures. This round brings the company’s total funding to $22.7 Mn.
The Boston-based MineralTree provides cloud-based payments solutions services to banks and their small and medium business customers. As per the deal terms, executive vice president and head of financial services at First Data, Andrew Gelb will join the board of the company.
The funds will be used to speed up product development and further expand its direct sales organisation targeting growing companies and financial accounting outsourcing (FAO) organisations.
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Speaking on the development, BC Krishna, MineralTree’s president and CEO said, “As a leader in payments and financial services technology – with unprecedented market insight and a network of relationships with banks and financial services organizations – First Data brings much more than capital to our relationship.”
Earlier in 2012, the company had raised $6.3 Mn from Fidelity Growth Partner India and in 2011 it had raised $1.5 Mn in seed funding from .406 Ventures. Fidelity Ventures has also backed online money transfer firm Xoom.com.
Founded in 2010 by BC Krishna, MineralTree delivers secure, online payments solutions to banks that are specifically designed to meet the needs of their small and medium business customers. The solution provides a simple, streamlined approach that brings new efficiency, security, and convenience to payments and cash management processes — at a cost that is easy to justify — while helping to enhance the bank’s customer relationships.
Prior to MineralTree, BC Krishna had also started companies like content management solutions firm FutureTense Inc and fraud detection solutions developer Memento.