Despite the pandemic, large corporations continued to deliver high transaction volumes when looking at cross-border payments. By tapping into a globally distributed payment network, payment technology providers are able to provide their customers to have faster, more cost-effective payment solutions. Vitesse PSP is a payment, liquidity, and treasury management platform that provides cross-border payments at a fraction of existing costs and rapidly with enhanced transparency and control. The platform works for use in corporate, financial services, e-commerce but the company has built significant traction in the insurance industry where it’s working with 70% of the insurers within Lloyd’s of London Market. The company charges a fee per transaction as well as a monthly treasury management fee for access to the platform that allows the digitisation of insurance payments, an area that’s been largely dominated by disparate workflows.
London TechWatch caught up with Vitesse PSP CEO Phillip McGriskin to learn more about the inspiration for the business, the company’s strategic plans, latest round of funding, and much, much more…
Who were your investors and how much did you raise?
This Series B saw Vitesse add two new investors to our investor base; Prime Ventures and Hannover Digital Investments. It also included follow-on investment from our existing shareholders and from Octopus Ventures. The total raised was $26M.
Tell us about your product or service.
Vitesse’s technology serves as the backbone to the financial infrastructure that runs throughout the insurance value chain, as well as for many corporates who use Vitesse for faster, more cost-effective payments. Our liquidity and treasury management platform is built on top of a globally distributed payments network providing control and transparency as well as improved capital efficiency and additional investment returns for our customers.
What inspired the start of Vitesse PSP?
Our founding team had successfully started, sold (Envoy), and worked at board level in some of the largest retail e-payment businesses (Worldpay) globally. We could see that while retail (e)commerce had moved on massively, other verticals had not undergone the same change and hadn’t seen the same benefits. The insurance industry, in particular, stood out with clear payment and treasury shortcomings and with over $4.5T (in claims alone) being paid out annually, the insurance market also represented a significant sized opportunity.
How is it different?
Vitesse is not operating in the highly commoditised retail payment space. We are working in a highly regulated market, that has a need for both payment services and sophisticated treasury functionality to support the flow of funds across the globe. We are providing a dual service of global payments and an insurance-specific regulated treasury platform that provides total control and transparency across the funds that insurers and related parties are moving around the market.
What market you are targeting and how big is it?
I want Vitesse to be the payment partner of choice for the insurance industry. In claims alone, there is over $4.5T paid out annually. And claims payments are just a starting point for us.
What’s your business model?
We use our globally distributed payments services and highly regulated treasury platform to make payments on behalf of, and provide treasury services to the insurance industry. Our business model includes transactional fees for the payment services as well as monthly service fees for the treasury management.
What are your post-COVID office plans?
Whilst our business transitioned very well throughout the various stages of the pandemic, and our staff worked and delivered brilliantly, I don’t think there is any substitute for human, person-to-person contact and interaction. Therefore, it is my aim to have our people back and working in the office now. However, I do appreciate the work world has changed. It’s not five days in the office anymore. We are encouraging our staff to come into the office two days a week.
What was the funding process like?
It was lovely and relaxing. I’d much rather be fundraising than running my business. Aaaagh!
Raising money is always a relatively brutal experience. It’s just always going to be full-on. Lots and lots of prep. Lots and lots of meetings and follow-up – and all whilst doing the day job and moving forward at speed. Vitesse is fortunate that we have an excellent, experienced team, the business has clearly demonstrated a product and market fit and our other fundamentals clearly supported our story. And then we were incredibly fortunate to find great partners that supported our view and backed the team.
What are the biggest challenges that you faced while raising capital?
Insurance is a very sticky business, and that is good for Vitesse. However, I don’t recall any insurance business having ever broken the land speed record for agreeing to change and then moving forward and implementing that change. That pace of growth can be a negative factor for investors –and we did see some of that during our meetings. However, as is the case with all investment, it’s about finding the right partner. One that understands the vertical and can see the end game – insurance is a very sticky market that is ripe for dragging into the Fintech revolution!
Insurance is a very sticky business, and that is good for Vitesse. However, I don’t recall any insurance business having ever broken the land speed record for agreeing to change and then moving forward and implementing that change. That pace of growth can be a negative factor for investors –and we did see some of that during our meetings. However, as is the case with all investment, it’s about finding the right partner. One that understands the vertical and can see the end game – insurance is a very sticky market that is ripe for dragging into the Fintech revolution!
What factors about your business led your investors to write the check?
- An experienced management team.
- Proven product-market fit.
- A large total addressable market
- Some significant near-term, very large opportunities that our investors were able to validate.
What are the milestones you plan to achieve in the next six months?
A continued focus on delivering our Faster Claims Payment services into the “London Insurance Market”. We’re already contracted with over 60% of managing agents and we’re looking to grow that. We’re also keen to get boots on the ground in the US. That is more of a 12-month goal but there will be a significant focus for this coming six months also. It’s a complex task.
What advice can you offer companies in London that do not have a fresh injection of capital in the bank?
There is a lot of capital available. It’s about being very clear on your value proposition and the state (size/problems you’re solving) of the market you’re going after. Obviously, you need a very strong (experienced) team around you and some decent revenue/customer runs on the board, with a clear route to more. Simple..
Where do you see the company going now over the near term?
I want Vitesse to be the payment partner of choice for the insurance market. And we are only scratching the surface of it now. There’s plenty of work for us to do to deliver our aspirations. Over the very near term, you’ll see a lot more of Vitesse adding to our products (more payment types globally for our customers to access) and within 6-12 months you’ll also see us land some boots on the ground in the US.
What is your favourite restaurant in London?
Roka – Charlotte Street (the original one and IMO still the best)
Murano – Queen Street, Mayfair.
