Eltropy Secures $25M to Expand Digital Communications Solution for Credit Unions
There’s good news for Northwest credit unions interested in implementing a member text messaging solution this year.
Strategic Link partner Eltropy will expand its all-in-one digital communications platform with $25 million raised in Series A funding from K1 Investment Management, the Curql Fund, and CMFG Ventures.
The investments come at a pivotal time, with more consumers demanding digital-first banking solutions, and credit unions seeking effective ways to connect with members on their devices.
“There is a fundamental shift in the way financial institutions interact with customers due to a rising demand for immediacy and convenience,” said Eltropy Founder and CEO, Ashish Garg. “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.”
The company’s text-messaging platform enables credit unions to communicate with members securely, efficiently, and in a TCPA-compliant way. Last fall, Clackamas Federal Credit Union used the Strategic Link partner’s solution to share important alertswith both its members and employees amid the devastating wildfires that ravaged the Northwest. SELCO Community Credit Union leverages Eltropy’s platform to process loan applications more quickly and efficiently. Text messaging can also be used to bolster a credit union’s reputation or provide hyper-personalized service to members in all life stages.
K1 Investment Management, a leading global investment firm focused on high-growth enterprise software companies, looks forward to partnering with Eltropy to transform the financial services industry.
“K1 is thrilled to partner with the Eltropy team as they transform the way consumers interact with its financial institutions,” said Christian Grant, Vice President at K1 Investment Management. “The company continues to see mass adoption of its software, with another record bookings month in May 2021, as customers look to automate historically manual communication and workflow tasks.”
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.
To date, more than 20 Northwest credit unions have partnered with Eltropy and seen success.
“We love working with Eltropy because they always step up to the plate no matter how hard we push them,” said Matt McEwen, Director of Digital Banking at Idaho Central Credit Union. “There aren’t enough good things to say about them.”