Justifi, an embedded fintech platform for vertical software-as-a-service companies, announced Thursday it raised a $6.6 million seed round of funding.
The round was co-led by San Mateo, Calif.-based Emergence Capital and Minneapolis-based Rally Ventures.
Minneapolis-based Justifi said the funding will be used to scale its team and build out the product.
JustiFi is helping to reduce the more than $195 billion that internet businesses paid in payment-processing fees in 2020. The company uses an AI decision engine to analyze transactions and reduce fees to the lowest rate at the interchange level.
"JustiFi was created to democratize fintech and accelerate the revenue potential of SaaS platforms," said Joe Floyd, general partner at Emergence Capital.
The company works by integrating numerous payment acceptance tools into a product that is designed to save the most money, resulting in the highest possible revenue and profit for the client.
“To put it bluntly, we know that nearly every business in the world pays too much in payment processing fees. Those high fees are especially painful to vertical SaaS platforms, where gross margin is materially impacted by each basis point,” said Justin Kaufenberg, managing director at Rally Ventures and co-founder and former CEO of SportsEngine Inc.
