New York-based financial technology startup Lithic has raised $60 million in funding largely through Stripes, Bloomberg reported on Wednesday (July 28).
With the funding round, the 7-year-old company’s valuation saw a fivefold increase to $800 million, according to Bloomberg. Other fund contributors included Bessemer Venture Partners, Index Ventures, Exor, Tusk Venture Partners, Rainfall and Commerce Ventures. Lithic will use the new funding to bolster its team and expand upon its platform through acquisitions and broadening its reach internationally, according to the news outlet. Lithic is eyeing an expansion into Canada as well.
Lithic, formerly known as Privacy, is comprised of more than 50 creators, according to the company’s website. In essence, the company launched in 2014 to create single-use credit cards to thwart fraud prior to adding an enterprise offering.
“The process for issuing cards is expensive and archaic,” Lithic Co-Founder and Chief Executive Officer Bo Jiang told Bloomberg. “Our goal is to make it as fast and as easy as possible.”
Jiang noted that the firm creates technologies to streamline debit and credit card issuing for businesses.
In an age of near-constant data breaches and cybersecurity threats, Lithic and the growing number of businesses creating virtual credit cards appeal to companies looking to prevent fraudulent use as well as the misuse of funds, PYMNTS reported previously. In addition to preventing fraud, single-use virtual cards also help companies rein in control of employee spending when cards are created with a specific purchase in mind.
This time last year Lithic had issued 5 million virtual cards as compared to more than 10 million as of May.
The company’s transaction volumes have increased fourfold since the start of 2021 to over $1 billion in yearly processing volume, according to Bloomberg. By year’s end, the company expects that number to jump to $2.5 billion.
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