SBT secures USD 110 million in growth financing

As per the information detailed in the press release, SBT raised USD 110 million in growth financing in a transaction co-led by Edison Partners, a growth equity investment firm, and StepStone Group, a global private markets investment firm. Additionally, Stifel Venture Bank, a subsidiary of Stifel Bank, offered a lending facility.

The newly acquired funds are set to accelerate SBT’s growth with large financial institutions and expand its payments and artificial intelligence (AI) features. Moreover, the company plans to utilise the capital injection to seek inorganic opportunities.

The current funding follows Edison Partners’ initial investment in STB from November 2021, with the company’s bookings and revenue increasing substantially via compliant messaging and payment solutions developed for consumer finance businesses in origination, servicing, marketing, and account receivable use cases. Considering that 2023 STB’s messaging volume expanded by 95% from 2022, according to company data, the firm intends to double its growth throughout 2024.

Furthermore, representatives from STB underlined that the current news highlights Edison Partners and StepStone’s belief regarding the potential for an enterprise-scale compliance platform to orchestrate text messaging and payments in consumer finance. Officials mention that consumers require an alternative to emails, difficult web portals, and lengthy call centre calls when engaging their financial providers. Additionally, despite texting being universal with consumers, it did not match up to the business requirements of finance regulators and carrier networks. STB expressed its commitment to bridging this gap to drive returns for its financial customers while accelerating its development strategy's advancement. The growth financing is set to enable STB to work towards achieving its objectives and expanding its operations and capabilities.

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