Snap Mobile acquires fintech company on heels of $90M funding round

Seattle-based Snap Mobile, the parent company of the fundraising platform Snap Raise, announced Tuesday it has acquired the Pasadena, California-based fintech company Groundwork.

The news comes less than a month after Snap Mobile announced a $90 million funding round that co-founder and CEO Cole Morgan said at the time would help the company pursue acquisitions to expand its services. With Groundwork, Snap Mobile is gaining banking and financial management services.

“Our goal at Snap Mobile is to create a simple, integrated, full-service solution for high school arts and athletic programs, and our acquisition of Groundwork is a major step in achieving this vision,” Morgan said in a news release.

The companies aren't disclosing the financial terms of the deal, which closed in August, according to a Snap Mobile spokesperson. The spokesperson added that Groundwork's eight full-time employees are joining Snap Mobile, and Groundwork co-founder and CEO Bill Lennon will become Snap Mobile's vice president of financial technology. Snap Mobile plans to retire Groundwork's brand at the end of the year.

Snap Mobile was founded in 2014. Its Snap Raise platform allows clubs and teams to raise money and track funds online. The company says 48,000 teams, groups and clubs use Snap Raise in the U.S.

Groundwork, meanwhile, was founded in 2015. In addition to banking and budgeting, Groundwork helps teams and clubs accept payments, automate billing and create sub-accounts. According to the company, Groundwork has processed over $152 million in payments to date. Evolve Bank and Trust provides the company's back-end banking services.