US-based start-up Spade has secured $40 million in a Series B funding round with plans to expand its data and AI platform with new workflow automation tools.

The round was led by growth equity firm Oak HC/FT, with additional support from Andreessen Horowitz, Y Combinator, Flourish Ventures, Gradient, and National Bank of Canada’s corporate venture arm, NAventures.

Headquartered in New York, Spade offers a financial data enrichment API that converts raw payment transaction strings into structured data for banks and fintechs by identifying merchants and attaching attributes like category and location.

The company was founded by CEO Oban MacTavish, COO Tess Bloch, and former CTO Cooper Hart in 2021 and was incubated as part of Y Combinator’s Winter 2022 batch. Spade went on to raise $10 million in a Series A funding round led by Flourish Ventures in December 2023.

In a statement, the company says it will use the new funding to increase its staff headcount and “expand beyond transaction enrichment to provide a full payments intelligence platform”.

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“Rather than simply returning enriched transaction data, the platform enables customers to create, manage, and automate workflows that solve business critical problems,” the company adds.

Spade reports 470% year-over-year revenue growth, peak daily processing of up to 1.9 billion transactions, and 99.9% coverage of US and Canadian merchants.

Customers cited by the company include Stripe, Bilt, and Mercury. Spade says more than 85% of clients use the platform for “multiple mission-critical workflows”.