Banking tech company Knight Fintech in talks to raise $25 million led by Accel

economictimes.indiatimes.com:

Banking infrastructure and lending solutions provider Knight Fintech is in final stages to close $25 million in a fresh round of funding led by Accel, at least three people told ET.

The round is expected to include a secondary portion, which might see some of its initial investors exit.

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Existing backers 3one4 Capital and Prime Venture Partners are also expected to participate in the new funding round. However, final contours of the deal are still being worked out, people cited above said.

“The discussions around the company’s valuation haven't closed yet because some of the early investors are looking for an exit through a secondary deal,” one of them said.

The latest deal underscores the trend around venture investors looking to back financial and banking-tech software providers, on the back of an expanding addressable market, improved revenue pools, and higher predictability of outcomes for business-to-business (B2B) entities this funding winter.

Earlier this year, startups such as Perfios and Lentra, which provide lending and banking infrastructure to fintechs,had raised $70 million and$27 million in equity funding, respectively, bucking the trend of a funding winter.

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Other early-stage startups in the space including credit card management platform 42 Card Solutions and banking service software platform Falcon are also in talks with investors for