US fintech Solutions by Text lands $110m in growth financing

Solutions by Text (SBT), which provides an embedded payments solution powered by a compliant-first messaging platform, has bagged $110 million in fresh growth financing.

Solutions by Text bags $110m in growth financing

The round was co-led by US-based global private markets investment firm StepStone Group and Edison Partners, a growth equity investment company.

In addition, Stifel Venture Bank, a division of Missouri’s Stifel Bank, has provided the firm with an undisclosed lending facility.

Founded in 2008 and headquartered in Dallas, US, SBT claims to be the world’s first “FinText” firm, offering the consumer finance sector a platform which combines messaging and real-time embedded payments services.

The company says its offering enables financial services firms “to compliantly engage, interact and transact with their consumers in real-time”. With the platform, firms can text customers payment plan reminders and past due notices, among other things. Customers can then respond to the texts to make payments.

The investment follows a successful period of growth for SBT in 2023, during which the firm claims its messaging volume increased by 95% compared to the previous year.

David Baxter, SBT’s CEO, says: “Consumers want an alternative to endless emails, confusing web portals, and lengthy rounds with call centres when engaging their financial providers.”

SBT intends to utilise the new funds to expand its AI and payments capabilities and seek “inorganic opportunities” for growth.