Dwolla, a US-based financial transfer software developer that counts derivatives market operator CME Group among its investors, closed a $12m round on Monday led by venture capital firm Foundry Group.
Foundry was joined in the round by fellow VC firms Union Square Ventures, Ludlow Ventures and Next Level Ventures, as well as VC fund Firebrand Ventures and venture studio High Alpha.
Dwolla has created a payment transfer engine for businesses that handles bank transfers through the US Automated Clearing House system.
The customisable software, which also verifies bank accounts and manages customer profiles, plugs into the back end of a client’s existing financial services software.
Proceeds from the round will go to working capital, and the company also plans to expand its headcount by more than 40 by the end of 2018.
Dwolla has raised approximately $51m in funding to date, including $9.7m received in a 2014 series D round led by CME Group that featured Union Square, Village Ventures and Andreessen Horowitz.
The company’s last funding was a $6.9m round in January 2017 that was led by Union Square Ventures and Foundry Group and backed by Next Level Ventures, Ludlow Ventures, High Alpha, Firebrand Ventures and Detroit Venture Partners. Its earlier investors include Thrive Capital and BetterWorks.