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Bootstrapped for over a decade, this Dallas company just secured $110M to help people pay bills by text | TechCrunch

May 29, 2024 - techcrunch.com
Solutions by Text (SBT), a company that facilitates bill payments and loan applications via text messaging, has raised $110 million in new growth funding. The round was co-led by Edison Partners and StepStone Group, with Stifel Venture Bank providing a lending facility that made up less than 15% of the total. The company, founded in 2008, transitioned from a consumption model to a subscription business, with SaaS comprising about 90% of its business by the end of the year. SBT's messaging volume increased 95% in 2023 from the previous year.

The company plans to use the new capital for product development, accelerating its product roadmap, R&D, seeking acquisitions, and enhancing its AI offerings. SBT also entered the embedded payments space in partnership with Nuvei, launching its "FinText" product that allows consumers to make payments through text-based responses. The company's customers include Best Egg, eBay, US Bank, and a top 15 auto loan provider, among others.

Key takeaways:

  • Solutions by Text, a company that provides text messaging services for bill payments and loan applications, has secured $110 million in new growth funding. The funding was led by Edison Partners and StepStone Group, with Stifel Venture Bank providing a lending facility.
  • The company was founded in 2008 and has seen its revenue increase by more than 3X since its last funding round in 2021. It is currently EBITDA positive and is working towards profitability.
  • Solutions by Text offers conversational messaging tools to businesses for real-time interaction with customers. It has recently entered the embedded payments space, allowing consumers to make payments through text-based responses.
  • The new capital will be used for product development, accelerating its product roadmap, R&D, seeking acquisitions, and enhancing its AI offerings. The company believes AI can provide a rich experience and help people self-negotiate their debt.
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