Relay Secures $50 Million to Scale Small Business Banking Platform

Relay has raised $50 million in growth funding from General Catalyst’s Customer Value Fund to scale its digital banking and money management platform for small businesses. The company currently serves over 150,000 small businesses across the U.S. and manages $1.3 billion in customer deposits through Thread Bank, which is FDIC-insured. Relay’s platform consolidates accounts, cards, bills, invoices, and capital tools into one system, offering real-time cash flow visibility and faster financial decision-making. The investment marks a key milestone for Relay, which has seen strong revenue growth since its Series B funding in 2024. The company projects revenue will triple by the end of 2026, driven by demand for integrated financial management solutions among small business owners. Many small businesses still rely on disconnected legacy tools for payments, invoicing, and expense tracking, creating inefficiencies and financial stress. Relay aims to simplify this process by providing a unified platform that helps owners manage cash flow more effectively. Relay’s co-founder and CEO, Yoseph West, stated the funding reflects confidence in the company’s mission to provide small business owners with better financial tools. The platform recently introduced Relay Capital term loans, allowing businesses to access funding directly within the system, reducing traditional lending friction. This feature enhances capital availability and operational decision-making, particularly during economic uncertainty. General Catalyst’s Customer Value Fund supports Relay’s growth without immediate burn constraints, enabling faster customer acquisition while maintaining product development focus. The firm highlighted Relay’s strong product-market fit and growing customer acquisition engine as key strengths. Partner Andrew Ziperski emphasized the investment’s role in accelerating Relay’s expansion and modernizing business banking systems for small businesses. General Catalyst, a global investment firm, has backed hundreds of technology companies across industries. Its funding model prioritizes long-term partnerships, aligning with Relay’s vision to transform cash flow management for small businesses. The platform’s goal is to turn financial stress into actionable insights, empowering business owners to make confident operational decisions.