Plastiq, a platform that helps people to make payments or get paid using credit cards has raised $75 million in Series D funding round. The new funding round has been led by B Capital Group along with the participation of Accomplice, Khosla Ventures, Top Tier Capital Partners, and Kleiner Perkins. With this round, the company’s total known venture capital raised has been noted more than $140 million.
According to Eliot Buchanan, the Founder of the Plastiq, he was inspired to launch Plastiq by one of his payment that was rejected as the Harvard University said it doesn’t accept credit. At that time, Eliot tried to pay his tuition bill using his credit card. After that incident, he realized that many people face the same problem for thousands of different transactions including board, rent and vendor payments.
Eliot explains that, users can fill their credit card information on Plastiq and then they will be enabled to make payment through their credit cards for which they will be charged 2.5% fee. The founder also noted that he has established the Plastiq by keeping consumers in mind and SMBs have now accounted for 90% of the revenue.
Eliot states, “SMBs don’t need to be burdened with additional debt or additional loans. So rather than trying to reinvent the wheel, let’s use a behavior they have already earned.” He adds, “Our customers are more thankful for solutions like ours as traditional sources of lending are drying up and not as easy to access. Hopefully, we can measure how many businesses make it through this because of us.”