Mastercard returns to back Sydney fintech mx51’s $32.5m Series B

Payments technology firm mx51 has raised $32.5 million in a Series B round led by an undisclosed global fintech investor and supported by returning backers including international payments giant Mastercard.

The funds, which bring mx51’s total raised to date to $57.5 million, will be used to push domestic growth initiatives and launch its international expansion plans, with other returning investors including Acorn Capital, Commencer Capital, Rampersand and Artesian.

Mx51, which operates a payments-as-a-service platform for banks and non-bank acquirers to provide payments solutions to merchants, raised the capital amid rapid growth - with the Sydney-based company having doubled its global headcount to 100 in the space of just over a year.

“Thanks to our partnerships to date, we estimate we now have the means to access a significant share of Australia’s merchant market. With this new capital, we’re poised for an aggressive rollout over the next few years, first in Australia and then abroad,” mx51 CEO and co-founder Victor Zheng said.

“We’ve succeeded on the back of our sharp focus on simplifying the merchant payment experience, and empowering banks and acquirers to innovate around legacy technology and to keep pace with changes in the payments sector.

“This capital raise is also in spite of global macro headwinds. This is because our primary customers, banks and acquirers, are well positioned to deepen collaboration and co-invest with fintechs to deliver modern payment experiences to their merchants.” 

In addition to expansion, mx51 - founded in 2016 - will use the funds to double down on its core in-store, online payments and merchant dashboard solutions. It will also develop further capabilities to assist with fraud prevention and data-driven customer insights.

“Mega rounds in this market cycle may well be rare, but mx51 is a rare case,” said Rampersand managing partner Paul Naphtali, whose company has backed mx51 since pre-seed.

“The tenacity and daring to build bank-grade core infrastructure with relatively little funding shows how the Australian founder mindset is critical - build more with less.

“This has the potential to be another Australian-made global fintech success story.”

Commencer Capital fund manager Jeff Law said the company was excited to continue to support the mx51 team.

“In the time since our initial investment they have proven their top-tier capability as founders and established payments industry experts,” Law said.

“Their impressive traction with major banks and acquirers has demonstrated the bank grade quality and critical need of the MX51 solution, and the potential global applications.”