After the acquisition, WalletFi founder explores opportunities for more fintech growth in North Carolina
North Carolina-based WalletFi stepped in to deal with what is very well one of the most frustrating experiences for any adult…dealing with a lost or stolen wallet.
The process of monitoring transactions, re-ordering cards and reinstating automatic payment subscriptions can take hours and give you a big financial headache.
On the other side of the equation, financial institutions have to deal with the hassle of reissuing and sending out a replacement card, which takes several days to reach the customer. Meanwhile, a consumer is likely to switch to a backup card for upcoming transactions.
“So what was my primary financial institution [as a customer] could be my second,” fintech entrepreneur Marc Miller explained to Hypepotamus. While his startup WalletFi began as a B2C play, it aimed to be a subscription management solution for banks, credit unions and financial services companies to help such institutions navigate the increasingly complex personal finance and payments space.
“We saw [WalletFi] as a way for banks to retain customers when a card is lost or stolen and get them back up and running with those services right away,” he added.
The startup, which got its start in Raleigh, has evolved significantly since launching back in 2016. Ultimately, WalletFi is looking to provide financial institutions with better data around spending habits, while helping to drive better practices around financial wellness .
The startup attracted $1 million in outside capital over the years from investors in the local and national fintech space, according to available Crunchbase data.
WalletFi’s next phase will be ushered in via acquisition.
Fellow Raleigh fintech startup Constellation Digital Partners announced in August plans to acquire WalletFi and integrate its technology and team into its digital financial services platform.
The official terms of the acquisition were not made public.
The two teams met at a Fintech Meetup several years ago, and eventually Constellation became an early customer of WalletFi’s solution, according to Miller.
Moving from customer to acquirer seems to have been a natural fit for Constellation, a startup that last raised an $18 million round in 2021.
“Our culture aligned, our vision aligned,” Miller said.
Constellation will retain the entire WalletFi team, with Miller moving in as Constellation’s Chief Revenue Officer.
Making moves in Fintech
M&A is still the most popular exit strategy across fintech startups. But seeing two North Carolina-based fintechs strike a deal is a rarer occurrence.
The overall health of the state’s fintech landscape continues to grow. Other big headlines from the past year include Finmark raising a $6.5 million seed round, Payzer closing a $23 million Series D, and Apiture continuing to grow with a $29 million venture round.
Continuing to build WalletFi in North Carolina is a strategic move, Miller added.
“From a financial services perspective, [North Carolina] is a hotspot … the biggest names in the business are here,” Miller told Hypepotamus. “This allows and enables us to continue to innovate right in our backyard with customers who are right here.”
