Payments infrastructure fintech mx51 bags $32mn in Series B

mx51's CEO Victor Zheng (left), COO Magnus Hsu (centre) and CPO Steve Hadley.
mx51's CEO Victor Zheng (left), COO Magnus Hsu (centre) and CPO Steve Hadley.
Payments fintech mx51, which offers a payments-as-a-service platform for banks and embedded payment solutions for merchants, has raised AU$32.5mn.

Payments infrastructure fintech mx51 has raised AU$32.5mn in a Series B funding round led by an unnamed “global fintech investor”.

The two-year-old fintech offers payments technologies on two different fronts: for banks and acquirers it has a payments-as-a-service platform that leverages their existing legacy tech infrastructure; while for merchants, it provides a suite of embedded payment solutions that allow retailers to create a seamless payment experience both online and in store.

Mx51 will use the money to secure “aggressive” expansion, starting in its home market of Australia before rolling out in other markets. It will also double down on its core in-store, online payments and merchant dashboard solutions while developing new capabilities to detect fraud and provide customer insights.

The latest round takes the total amount raised by mx51 to more than AU$37mn, having closed a AU$25mn Series A round last year. Since then, the fintech has doubled its headcount to more than 100 and says it’s on track to double revenues this calendar year.

Raising over AU$30mn despite macroeconomic climate

Mx51 CEO and Co-founder Victor Zheng says: “Thanks to our partnerships to date, we estimate we now have the means to access a significant share of Australia’s merchant market. With this new capital, we’re poised for an aggressive rollout over the next few years, first in Australia and then abroad.

“We’ve succeeded on the back of our sharp focus on simplifying the merchant payment experience, and empowering banks and acquirers to innovate around legacy technology and to keep pace with changes in the payments sector.

“This capital raise is also in spite of global macro headwinds. This is because our primary customers, banks and acquirers, are well positioned to deepen collaboration and co-invest with fintechs to deliver modern payment experiences to their merchants.”

Paul Naphtali, Managing Partner at early-stage tech VC Rampersand, which has backed mx51 since pre-seed, adds: “Mega rounds in this market cycle may well be rare, but mx51 is a rare case. The tenacity and daring to build bank-grade core infrastructure with relatively little funding shows how the Australian founder mindset is critical – build more with less. This has the potential to be another Australian-made global fintech success story.”

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