Affiniti, a New York-based fintech startup founded by Aaron Bai and Sahil Phadnis, has raised US$17 million in a Series A round led by Signal Fire.
The funding comes just six months after the company secured an US$11 million seed round, the founders told TechCrunch.
Other investors in the latest round include Contrarian Thinking Capital, Yahya Mokhtarzada of TrueBill, and Austin Rief of Morning Brew.
Existing backers Indicator Ventures, LightShed Ventures, and RiverPark Ventures also participated.
In addition to equity funding, Affiniti previously signed a US$15 million debt facility that can be expanded to US$50 million.
Affiniti builds expense management software for small businesses such as pharmacies, HVAC companies, and auto dealerships.
The company offers credit cards with customised cashback rewards, native QuickBooks file integration, and short-term loans against invoices.
While companies like American Express and Capital One already serve small businesses, Affiniti positions itself as part of a new wave of financial technology tools.
Bai refers to this as “v3” fintech, describing it as software that not only manages spending but also provides analytics and financial insights.
“These traditional small businesses don’t have a finance team,”
he said.
The new capital will support the launch of additional features, including banking, bill payments, cash flow analytics, and integration with enterprise resource planning and point of sale systems.
Founded by Bai, 20, and Phadnis, 22, while attending UC Berkeley, Affiniti has taken a focused approach to growth by partnering with industry trade groups.
This strategy has given the company early access to specific verticals and added credibility among potential customers.
Since its launch, Affiniti has grown to 1,800 customers and processes about US$20 million in monthly transactions.
The founders expect that number to reach US$1 billion annually by the end of the year. Phadnis said revenue has grown tenfold in the past year, noting that “twelve months ago, we were at a million dollars.”
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