I recently wrote about the so-called “integrated finance” trend, citing the example of Intergiro’s recent fundraising in space. There is now another example of this trend in the form of HUBUC.
Billing itself as “AWS for Financial Services,” the startup – which emerged from Barcelona, Catalonia, Spain – has now raised a $10 million funding round co-led by WndrCo and Runa Capital.
WndrCo is a significant win for the company, as the deal brings Jeffrey Katzenberg, managing partner of WndrCo and former co-founder and CEO of Dreamworks Animations, to the HUBUC capitalization table. He’s a powerful ally to have.
But the list of influential investors does not stop there. Y Combinator and Village Global, backed by Jeff Bezos, Kenneth I. Chenault, Abigail Johnson and Bill Gates, also participated alongside a number of angel investors (listed below).
Founded in 2021 by a pair of fintech entrepreneurs (Hasan Nawaz, CEO, and Ignacio Javierre, COO), HUBUC says it does the heavy lifting of integrating financial services into business offerings through an API with seamless solutions. coded. This means that bank accounts, payments, virtual and physical cards as well as real-time exchange rates and digital wallets can be offered at HUBUC, as it sits as a layer between the financial partners it works with and the company’s product. This means that it manages contracts, regulatory requirements, AML, other integrations and risks, etc.
In a statement, Nawaz said, “Integrated finance is no longer the exclusive privilege of big tech companies. Our vision is to become the platform that allows any company to integrate financial services into its products. And we achieve this by simplifying a hugely complex process and bringing it all together in one contract and one API. He says they looked at various fintech verticals in 2017, but decided to go with an all-encompassing API approach.
HUBUC says it now covers 58 territories, working with products such as travel booking payments, marketing and media spend, and employee benefits. Customers include Mastercard, Wagestream, PayFlow, OkTicket and Declarando.
Of course, they are not the only players. These include FIS, Temenos, Adyen and Wex. Some analysts predict that by 2025, revenue from the embedded fintech payments segment could reach $141 billion.
Katzenberg, former chairman of Walt Disney Studios and co-founder of WndrCo, said, “Integrated finance will disrupt banking across all verticals, from retail to mobility to logistics and insurance. . But to achieve this, it requires significant investment – and therefore risk – to grow and deploy. We can see the enormous value that HUBUC offers its customers by providing a full range of services. »
Andre Bliznyuk, General Partner at Runa Capital, added, “We see fintech infrastructure as one of the most promising themes for the next 10 years, as the demand for launching financial products is rapidly accelerating.”
Funding round angels included ´Sujay Jaswa (Dropbox), John Lilly (ex-CEO Mozilla), Immad Akhund (CEO Mercury), Lars Fjeldsoe-Nielsen (ex-CEO Uber), Bo Jiang (CEO Lithic), John Bautista (Orrick Partner), and Anthony Saleh (angel investor in Coinbase and Robinhood).