Relay Raises $32.2 Million in Series B Funding to Accelerate Business Banking Platform Development

Relay, a business banking platform, has secured $32.2 million in a Series B financing round to enhance its product development. The company plans to focus on developing spend management, smart credit products, and a financial application programming interface (API) marketplace with the new funding.

According to a press release by Relay, the goal is to provide small and medium-sized businesses (SMBs) with the necessary tools to address cash flow challenges. Yoseph West, co-founder and CEO of Relay, emphasized the importance of cash flow clarity and control for SMBs to sustainably fuel their everyday operations.

Relay’s online banking platform allows business owners to easily track their cash position, earnings, spending, and savings. The platform’s user engagement is high, with business owners logging in an average of 13 times a month, and 40% of primary banking users logging in daily.

The company has experienced significant revenue growth, tripling in 2022 and sextupling in 2023. The Series B funding round was led by Bain Capital Ventures, reflecting confidence in Relay’s trajectory and potential for growth in the SMB market.

Kevin Zhang, partner at Bain Capital Ventures, expressed excitement about supporting Relay as it enters its next phase of growth and focuses on meeting the unique needs of SMBs. The traditional channels for SMB financial management leave room for innovation and improvement, as noted by Zaid Rahman, CEO of financial platform Flex.

Rahman highlighted the fragmented nature of current solutions for SMBs, emphasizing the need for comprehensive and integrated financial tools. With Relay’s latest funding, the company is well-positioned to continue innovating and providing essential financial services to SMBs.