Startup API platform Sila raised $13 million in a Series A funding round led by Revolution Ventures, with participation by existing backers Madrona Venture Group, Oregon Venture Fund and Mucker Capital, and angels including Wise Co-founder and CEO Taavet Hinrikus.
“Sila’s mission has always been to make money programmable. Access to the U.S. banking system, especially for innovators and entrepreneurs, is extremely complex and prohibitive,” Sila Co-founder and CEO Shamir Karkal said in a press release.
Karkal said that the Sila Money API platform offers seamless “compliant money storage and money transfer” and is easily adaptable to changing workloads and marketplace demands. While the platform is good for any “software engineer and app developer in the world,” it works exceptionally well in sectors that are heavily regulated, such as investing, insurance, gaming and digital assets, he added.
Launched in 2018, Sila has raised more than $20 million to date and is “backed with bank agency status through Evolve Bank and Trust,” per the press release.
The startup’s banking API enables its clients to sidestep integration with traditional banks, which could potentially save time in development and could reduce legal and regulatory fees. Sila’s platform also has Know Your Customer (KYC) and Know Your Business (KYB) integrated.
The company said it posted first-quarter results this year that reflected quadrupled transaction volume. Further, it said that customers’ end-users surged 535 percent across the past seven months. Sila works with FinTechs and startups as well as companies listed on the NYSE.
“Led by a seasoned leadership team, including one of the original FinTech pioneers, Sila is the go-to platform for integrating regulatory-compliant payment capabilities into products. By tying together the disparate, archaic services currently required to transfer funds and ensuring compliance within a complex regulatory landscape, the Sila platform makes it simple and seamless to move money,” said Clara Sieg, partner at Revolution Ventures, who is joining the board of the company.
PYMNTS’ latest Open Banking Tracker takes a look at the benefits of using APIs to forge relationships between merchants and their customers. It also examines the benefits of creating customized experiences for consumers to foster engagement