Eltropy Raises $25 Million in Series A Funding to Expand Digital Communications Platform for Financial Institutions
Eltropy, an award-winning compliant and secure digital communications platform for Financial Institutions (FIs), announces that it has closed $25 million in its Series A funding round, led by K1 Investment Management (“K1”), a leading investment firm focused on high-growth enterprise software companies, with additional investment from the Curql Fund and CMFG Ventures. With the funding round, Eltropy plans to more than double its headcount and expand its digital communications platform for FIs.
“Eltropy’s solution fulfills the needs of financial institutions of all sizes based on our commitment to tailor-fitting our enterprise solution for our customers,” said Ashish Garg, CEO and founder of Eltropy. “There is a fundamental shift in the way FIs interact with customers due to a rising demand for immediacy and convenience. We will continue to expand our digital solutions to best fit the needs of the industry and further invest in our customers’ digital transformation efforts as a result of our Series A funding.”
"K1's investment in Eltropy comes at a pivotal time, with an increasing need for financial institutions to provide a secure, compliant way to digitally interact with their customers," said Christian Grant, Vice President at K1.
“Over the past year, Eltropy has seen a mass adoption of its solution as customers seek a way to automate historically manual communication and workflow tasks. We look forward to partnering with Eltropy on this journey to transform the industry.”
Commitment to Credit Unions
Both additional investors, the Curql Fund and CMFG Ventures, are credit union-specific venture capital funds, reaffirming Eltropy’s commitment to the industry.
The mission of CMFG Ventures, the investment arm of CUNA Mutual Group, is to identify and invest in the next generation of like-minded entrepreneurs to help CUNA Mutual Group continue its focus on serving credit unions and their members.
Curql Fund, managed by Next Level Ventures, is the only fund of its kind serving as a gateway between FinTech and credit unions. With investors including 30 of the nation’s largest credit unions, this is the first investment for the fund.
“Our investments focus on collaboration between FinTech companies and credit unions to improve how members experience their credit unions. Eltropy’s solution to bridge communications channels became a natural fit,” said Nick Evens, investment committee member for Curql Fund.
“We’ve had our eye on Eltropy’s technology for some time, and its ability to make a real impact by innovating through a digital communication platform is what we would like to cultivate and grow not only for the fund, but our initiatives to create value for both the FinTech and our credit union investors in Curql Collective.”
“This investment once again proves the value of Eltropy’s product within the credit union ecosystem,” said Barbra L. Lowman, president of CUNA Strategic Services (CSS). CSS named Eltropy the Best Text Messaging Solution for Credit Unions in 2019. “Eltropy has consistently shown it is committed to helping credit unions provide the best member experience with its digital communication platform. CSS is honored to partner with Eltropy as they continue to increase their growing footprint within the credit union industry and beyond.”
Eltropy enables Financial Institutions to digitally engage in a secure and compliant way. Using our world-class digital communications platform, Credit Unions, Banks, Debt Collectors, Insurance Companies, Lenders and FinTechs can improve operations, engagement and productivity. Eltropy also integrates with IT systems, such as Symitar and Corelation, and uses Analytics to provide engagement insights. For more information about Eltropy, please visit eltropy.com.
K1 builds category-leading enterprise software companies. As a global investment firm, K1 assists high-growth businesses to achieve successful outcomes, and invests alongside strong management teams that continue to guide their organizations on a day-to-day basis. With over 100 professionals, K1 and its operating affiliate, K1 Operations LLC, change industry landscapes by assisting with operationally-focused growth strategies designed to assist portfolio companies scale efficiently. Since inception of the firm, K1 has partnered with over 150 enterprise software companies including industry leaders such as Apttus, Buildium, Checkmarx, Clarizen, ControlUp, Emburse, FMG Suite, Granicus, IronScales, Litera Microsystems, Onit, Rave Mobile Safety, RFPIO, Smarsh, WorkForce Software and Zapproved. For more information about K1, please visit k1capital.com or follow us at linkedin.com/company/k1im.
About CUNA Mutual Group
CUNA Mutual group is a financially strong insurance, investment and financial services company enabling people to make financial decisions that work for them. The company was built on the principle of “people helping people” and the belief that a brighter financial future should be accessible to everyone. For more information, visit cunamutual.com.
Curql is a collaborative approach to venture capital launched in 2020 by the progressive, industry-leading credit unions of Members Development Company (MDC) and is steered by a collective of former founders, operators, and leaders in the FinTech and VC spaces. The group’s flagship – Curql Fund I – invests in the visions of entrepreneurs who thoughtfully and purposefully develop financial services technology that revolutionizes and innovates how people engage with their money.
Curql Fund I is managed by Next Level Ventures, the largest investment firm managing credit union assets today. The Next Level team has over 50 years of collective experience in supporting the remarkable people leading the way in innovative technology development.