Fast, a business that offers online payment and identification tools, said this morning that it has closed a $102 million Series B round of funding led by Index Ventures. Stripe, a prior investor in Fast, was the driving force behind the current funding transaction.
Fast’s $20 million Series A deal was also led by Stripe, a major player in online payments. Fast announced in a release that it had raised $124 million so far.
The company claims that its checkout service’s gross merchandise volume (GMV) has “more than tripled each month,” and it expects this “trend to continue and expand.
We don’t have a basis from which to gauge the growth pace, but we do now have a projection for Fast’s future GMV progress, which we may use as a yardstick.
Fast’s sizable Series B follows a number of competing for online checkout providers that had obtained sizable sums of funding.
Late in December, the online checkout, identity, and payment service provider Bolt raised an additional $75 million for its Series C investment. Additionally, the company provided TechCrunch with a variety of growth measures, giving it a sense of both its current size and expected success going forward.
Then, with a valuation of $15 billion, Checkout.com raised $450 million in mid-January. “Checkout.com intends to develop a one-stop shop for all things related to payments, such as accepting transactions, processing them, and identifying fraud,” TechCrunch stated at the time. Therefore, it is comparable to Bolt and competes with some of what Fast has to offer.
Finally, Rapyd disclosed a day later that it had raised $300 million at a valuation of $2.5 billion. Rapyd sells anti-fraud technology and offers finance services via an API, according to TechCrunch, thus it appears to belong in this category. Rapyd also supports international e-commerce payments.
In the past month or two, at least $927 million has flowed into firms with similar eCommerce infrastructure market ambitions. Add Fast’s latest Series B to that total. This is a staggering amount of money in a short length of time—just about $26 million has been raised per day since the Bolt round.
How are the businesses all growing at such a breakneck pace? The most obvious response to the question is that because ecommerce is so significant and important to the global economy, there is room for many stakeholders to work on enhancing the experience of selling items online for both sellers and purchasers. The fact that there are so many startups competing to tackle the problem of online commerce suggests that they are all currently experiencing rapid development, which suggests a sizable market into which they all intend to expand.
And it’s difficult to claim that such technologies will be restricted by market size very soon in the aftermath of COVID-19 enhancing eCommerce and generally advancing the digitalization of the global economy.