Vindicia, a leading provider of on-demand payment management services, today announced it has secured $7.5 million in series D financing, bringing the total amount raised to over $21 million.
New investor ONSET Ventures led the financing in partnership with existing investors Bertelsmann Digital Media Investments (BDMI) -- a wholly owned subsidiary of Bertelsmann AG, a leading international media company -- DCM and Leader Ventures. The company also announced that ONSET Ventures General Partner David Lane and BDMI Principal Keith Titan have joined its board of directors. Titan offers deep expertise in digital media, while Lane brings to the board a track record for success in developing emerging IT infrastructure companies.
Vindicia will use this latest infusion of capital to hire new talent across the organization and expand its market presence, building on the success it has established in providing payment management services to online merchants via a software-as-a-service (SaaS) offering that combines a subscription billing solution with key fraud management capabilities.
"Online merchants have come to realize that a subscription payment management solution is more than a back-end operational issue, it is a core business imperative that goes directly to the bottom line -- for example increasing customer retention rates by up to ten percent," said Gene Hoffman, Chairman and CEO of Vindicia. "The additional funding announced today will help us to continue to scale our services to meet the demand for this solution while achieving profitability. The expertise and experience offered by David and Keith will prove valuable assets as well."
Vindicia has established a track record of success across diverse online markets. The company counts market leaders including Symantec, Intuit, Atari/Cryptic Studios and Outspark among its customers, for whom it processes over 200,000 transactions a day, projecting over 73 million total in calendar year 2009. Vindicia is also in its fourth year of compliance with the critical PCI security standard and SAS 70 auditing standard.
"Gene and his team understand that online merchants require a payment infrastructure solution developed specifically to leverage the inherent advantages of digital media and services," said Lane. "During due diligence, my firm confirmed its belief that Vindicia is the clear market leader. With a strong business model, significant revenues, a long list of marquee customers including market leaders in software, gaming, dating and online content, and a top notch management team, the additional capital announced today positions Vindicia to continue its fast growth."