Spade, a New York-based company, has raised $40 million in a Series B funding round. The company plans to grow its data and AI platform for modern financial services. The funding was led by Oak HC/FT, with support from Andreessen Horowitz, Flourish, Gradient, NAventures, the corporate venture arm of the National Bank of Canada, and Y Combinator. This comes after a year of rapid growth, during which Spade saw a 470% increase in revenue and reached peak daily transaction volumes of 1.9 billion.

Focus on Improving Transaction Data Quality

Founded in 2021, Spade aims to help banks and fintech companies make sense of messy and incomplete transaction data. Financial institutions handle billions of transactions daily across card programs, ACH, and wire transfers. Often, these records are difficult to interpret, leading to business problems such as disputes, poor customer experiences, and missed opportunities.

Spade tackles this by matching raw transaction data to verified businesses in its proprietary database. This process provides clearer insights into where a purchase occurred and who received the payment. Clean, structured transaction data is becoming essential for banks that want to automate their operations more effectively.

How Spade’s Platform Works

The company’s platform converts raw transaction records into verified merchant information in real time. Spade reports coverage of 99.9% of merchants in the US and Canada with over 99% accuracy. Its API infrastructure is designed for speed, with latency under 40 milliseconds, making it one of the fastest in its category.

Spade uses a proprietary matching engine and AI agents that scan the web and external sources to fill in missing data and eliminate duplicates. This continuous improvement process enhances the quality of its database over time. Customers leverage this enriched data for various purposes, including rewards attribution, transaction authorization, analytics, customer notifications, AI initiatives, and improving overall user experiences.

Plans for Future Growth

The new funding will enable Spade to expand beyond transaction enrichment. The company aims to develop a broader payments intelligence platform. This will involve building out new features and capabilities to serve an increasing demand from banks, fintechs, and other financial institutions.

Spade’s goal is to become the go-to data and intelligence layer for financial services. As AI adoption continues to accelerate, having detailed and verified transaction data will be critical for automating workflows and creating smarter financial products. The company is well-positioned to lead this transformation with its innovative technology and strategic investments.

Overall, Spade’s recent funding marks a significant step forward in improving the quality and utility of transaction data across the financial industry, paving the way for more automated and efficient financial services in the future.

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• https://justainews.com/companies/funding-news/spade-raises-40m-series-b-for-finance-ai-platform/