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Embedded finance startup Treasury Prime raises $40M

Illustration of dollar bills sticking out of a vault door.

Illustration: Megan Robinson/Axios

Treasury Prime, a San Francisco-based embedded finance startup, raised $40 million in Series C funding led by BAM Elevate.

Why it matters: Despite an overall slowdown in fintech funding, embedded finance continues to be a hot sector for dealmakers.

How it works: Treasury Prime brings a marketplace angle to the banking-as-a-service (BaaS) sector, as it seeks to play matchmaker between banks and fintech startups.

  • Unlike some BaaS providers, which may partner with just one or two banks, Treasury Prime currently works with 16 different banks.
  • That gives it the ability to connect fintechs with specialized financial institutions (e.g., banks willing to serve the cannabis industry).
  • It enables its fintech clients to seamlessly transfer funds between multiple banks they have relationships with.

Between the lines: Treasury Prime plans to use the funding to expand its banking relationships by signing up partnerships with more financial institutions.

  • It also hopes to expand its product capabilities to include lending in the future.

State of play: Dealmaking has picked up in the embedded finance space, where venture investors and potential acquirers are seeking out fast-growing startups that are building more modern tech infrastructure for fintechs and legacy financial institutions alike.

  • This week, publicly traded card issuing firm Marqeta agreed to acquire Power Financial, which built its own full-stack card issuing platform, for up to $275 million.
  • And Moov, which provides an open-source platform for accessing payments and banking services, announced yesterday that it had raised $45 million in Series B funding.

Of note: Banc Funds and Invicta also participated in the round, along with existing investors Deciens, QED and SaaStr.

  • The company has raised $73 million since its inception.
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