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BFD Expert Voices - Private Credit

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Relay, which builds banking and money management software for small businesses, raised $50 million, CEO Yoseph West tells Axios exclusively.

The big picture: Small-business banking is moving beyond basic accounts to tools that help owners see how much cash they can actually spend.

Follow the money: General Catalyst's Customer Value Fund provided the financing, which Relay will use to increase its customer acquisition spend.

The company previously raised about $51.5 million in funding, including a $32.2 million Series B round in May 2024.

Zoom in: Relay targets Main Street businesses with two to 50 employees that are too complex for freelancer tools but often too small to have a finance team.

West contrasts that group with venture-backed startups using Ramp, Brex or Mercury, and solo operators using Novo, Found or Lili.

How it works: Relay lets owners split money across accounts for payroll, taxes, inventory and operating expenses, and route incoming cash based on rules they set.

The platform also includes bill pay, invoices, cards, permission controls and an eight-week cash-flow forecast.

Relay recently added term loans through Relay Capital, with financing provided by Fundbox or Lead Bank.

Between the lines: Relay is trying to make the business bank account the operating layer for small-business cash flow.

"Most small-business owners check their bank balance. That's how they make financial decisions," West says.

The company makes most of its money from usage, including float income, interchange, invoicing and payment fees.

By the numbers: Relay says it serves more than 150,000 small businesses and oversees more than $1.3 billion in managed deposits through Thread Bank.

About 40% of Relay's business comes through company formation platforms, accountants and bookkeepers.

What's next: Relay sees an opportunity to build AI tools that help owners decide when to pay bills and how to bring in money faster

Exclusive: Relay raises $50M for small-business banking

Small-business banking is moving beyond basic accounts.

Illustration of dollar bills sticking out of a vault door.

Relay, which builds banking and money management software for small businesses, raised $50 million, CEO Yoseph West tells Axios exclusively.The big picture: Small-business banking is moving beyond basic accounts to tools that help owners see how much cash they can actually spend.

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Exclusive: Relay raises $50M for small-business banking

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