Butter Payments lands $21.5m Series A
Business love subscriptions, but this fintech think it can help every e-commerce business on the planet make 5 per cent more revenue by avoiding unnecessary ‘churn’.
Butter Payments, a fintech payments company, has raised a $21.5m Series A funding round.
The round was led by led by Norwest Venture Partners with existing investors Atomic, Transpose Platform and Spring Tide Capital also taking part.
Founded in 2020 by Vijay Menon, also its CEO, Butter Payments helps businesses using subscriptions to avoid accidental ‘churn’ of customers owing to failed payments.
“Accidental churn is the single leading cause of subscription churn, resulting in nearly $500bn in lost revenue on account of false declines per year. In the race to stem fraud, payments are being falsely declined at artificially inflated rates. Many companies are unaware that this problem exists at all,” Menon said in a blog post.
Payments can fail for several reasons, he adds. Legitimate causes such as stolen cards to the non- legitimate: processor error.
“Being able to parse through the metadata in real-time to make intelligent decisions around which transactions should and should not be authorized is not an easy task, and subscription businesses today are not equipped to handle this challenge at scale,” he added.
Butter, which previously raised a $7m Seed round, says it on average its platform can help firms add a 5 per cent additional boost to topline revenue.
“Our vision is to help every e-commerce business on the planet realise this growth,” Menon said.
“We’re building a world in which every online business is instantly 5+ per cent more valuable – simply by opening up access to the users who want their service already,” he added.