Solutions by Text, a Dallas-based text-finance platform, has recently secured a whopping $110 million in its latest fundraising round from significant sources including Edison Partners and StepStone Group, with less than 15% coming from Stifel Venture Bank through a lending facility.
The Cantrell brothers started the company back in 2008, and it took its first external investment only in 2021 during a $35 million development round led by Edison Partners. Since then, the company has expanded under the able leadership of CEO David Baxter, catering to several Fortune 500 companies and diversifying its services to meet a wide range of business needs.
Over the years, Baxter has guided the company towards an impressive revenue increase by transitioning from a consumption model to a subscription service model. By the end of this year, it’s expected that almost 90% of the company’s operations will be reliant on Software as a Service (SaaS) solutions. Clearly, Baxter’s focus on long-term, sustainable growth has borne fruits, as reflected in the company’s EBITDA-positive status.
In 2023, Solutions by Text saw a significant increase in message volume, a rise by 95% compared to the previous year. Their text messaging tools have been used extensively for marketing, overdue collections, and have attracted a diverse range of clients from various sectors.
Securing substantial funding for Solutions by Text
One of the key reasons for their success is their unwavering commitment to innovation and customer service, which has empowered them to adapt quickly to different industry needs and stand out as a leader in the text messaging field.
Despite the potential regulatory issues, Baxter assures that Solutions by Text has all compliance matters in control. Their suite of clients includes distinguished names in the financial sector and extends to industries like retail, utilities, and healthcare.
In October last year, the company teamed up with Nuvei to expand its services to include text-based payment processing called ‘FinText,’ which proved to be a significant step forward in shaping the company’s future.
With the latest round of funding, the company intends to speed up its product timeline, fuel research and development, and enhance its AI functionality. A portion will also be channeled towards potential mergers and acquisitions.
Baxter envisions AI playing a critical role in customer engagement and managing rising delinquency rates through effective debt management and negotiation strategies powered by this cutting-edge technology.
