US paytech Stax hits $1bn valuation

Stax, a payment technology company based in the United States, has raised $245 million in new funding, bringing its total worth to $1 billion.

Greater Sum Ventures (GSV), HarbourVest Partners, and Blue Star Innovation Partners also contributed to the round, and will serve as strategic partners to Stax.

Rob Wechsler, the creator and CEO of Blue Star, will join the Stax board of directors. For small enterprises, enterprise organizations, and the software suppliers that serve them, the Covid-19 outbreak “escalated the need for dynamic, flexible, and digital payment options,” according to Weschler.

Stax plans to use the additional funds to develop new products, improve client offers, increase its employees, and expand worldwide.

Stax, which was founded in 2014 by Sal Rehmetullah and Suneera Madhani, who serve as president and CEO, has expanded 500 percent in the last three years and handled more than $23 billion in payments for 22,000 businesses across the United States through its payment API.