Sila, a API platform that provides banking and payment infrastructure-as-a-service, has roped in $13 million in Series A funding round. If sources are to be believed, the investment will be used to develop the company’s payment and banking platform that provides software developers tools required to create financial products and services.
Reportedly, the round was led by Revolution Ventures along with existing investors Oregon Venture Fund, Mucker Capital, Madrona Venture Group, and Taavet Hinrikus, Wise co-founder. With this funding, the total investment attained by Oregon-based Sila reaches to $20 million.
Established in 2018 by Angela Angelovska, Shamir Karkal, Alex Lipton, and Isaac Hines, the company aims to streamline digital payments and storage in a regulatory-compliant manner using blockchain technology.
According to Sila CEO, Shamir Karkal, the idea behind Sila came across with the need for a financial app development, but was impeded by a banking sector that was "still stuck in the twentieth century." Mr. Karkal believes that consumers need a higher level of service, which is why so many people are flocking to fintech.
Although, when attempting to connect current banking systems, Fintechs and cryptocurrency inventors would always run into technology and compliance challenges as they expand and scale. Working with banks presents a challenge in which it becomes necessary to figure out how to interact with their mainframe, said Mr. Karkal, adding that in the process, one needs to be a compliance expert.
Sila’s banking APIs enables developers to make their own digital wallets, replacing the requirement to integrate with legacy financial institutions. The company has also partnered with fintech platforms, including Alloy, Plaid, Lithic and Arcus to move money.
Earlier this year, Sila raised a $7.7 million in seed round. Since then, the company has grown its revenue 10 times while its customer base expanded by over 500% in the past seven months.