fbpx

Stytch raises $90 Million Series B at 1 Billion valuation

Stytch, an API-first passwordless authentication startup, has secured $90 million in Series B funding, pushing the company over the $1 billion valuation line.

The investment, led by Coatue Management LLC with participation from existing investors Benchmark Capital, Thrive Capital and Index Ventures, comes just four months after Stytch raised a $30 million Series A at a valuation somewhere around $200 million. Since then, the startup has seen an almost 1,000% increase in developers using its passwordless authentication platform, rising from 350 developers in July to about 4,000 in November.

This, the company’s CEO tells us, is because of its API-first approach. “If you think about other passwordless startups, they’re very widget focused,” Reed McGinley-Stempel, CEO of Stytch and former Plaid employee tells TechCrunch. “We’ve had enough experience with non-API-first products that we knew there were a lot of limitations to what you can do.”

“For example, one of the common use cases we’ve seen that we would never have anticipated is checkout flows — adding the ability to create a new account at checkout with an SMS password or email verification, rather than guest checkout,” said McGinley-Stempel.

The company has also launched a number of new products since its Series A raise in July, including support for Sign In with Apple, Google and Microsoft, embeddable magic links and one-time passcodes by email. This week it’s also adding support for WebAuthn, allowing Stytch to support hardware-based authentication keys like Yubico, as well as biometric-based Face ID and fingerprint logins.

Stytch said it plans to further expand its platform over the coming months, too. As part of its Series B raise, it acquired Cotter, a no-code passwordless authentication platform backed by Y Combinator that allows users to add one-tap login to websites and apps. Stytch said it will make it easier for developers to adopt passwordless technologies.

The company will also use the funding to expand its 30-person team and to build out its infrastructure.

Stytch isn’t the only startup that’s on a mission to kill off the password. In June, Transmit Security raised $543 million, in what was believed to be the largest Series A investment in cybersecurity history, for its natively passwordless identity and risk management solution. The following month Magic, a San Francisco-based startup that builds “plug and play” passwordless authentication technology, announced it had raised $27 million in Series A funding.

Stytch seems to be Improving security and user experience with passwordless authentication. I’m sure the company will continue to prosper in its journey ahead. My best wishes to the team of Stytch.

Shishir Gupta, Founder and CEO, of StartupLanes.

Don’t keep wondering about funding, you can also raise funds. Learn how to raise funds here: Yes I want to raise funds.

If you are an emerging startup and are looking for investors to raise funds, StartupLanes has its own angel network and investment banking services and is connected to angel investors and VCs in 15 countries that ensure that our member startups have easy access to external funds to scale up constantly.

You can subscribe to our news posts by entering your email in the box on the right side of this page.

Check out our YouTube channel for insightful content from the Indian startup ecosystem.

Or join our Whatsapp group to interact with other founders: Yes, I want to join the Whatsapp group.

The right investment is key to beating inflation and growing your wealth. Do you wish to become an angel investor? Yes, I want to be an angel investor.

Are you a startup and facing challenges in your business? Do you want to grow your business? It is not as difficult as it sounds. Learn how to grow your business here- Yes, I want to grow my business.

For publishing an advertorial article about your company on our website, drop an email at taniya@startuplanes.com

Tags

top