While venture funding in fintech has cooled, several innovative startups defy the trend with compelling business models and strong growth metrics. These companies are tackling significant pain points in their respective niches and appear positioned to achieve $1 billion valuations within the next couple of years. Here are five rising stars to watch:
1. Finix: The Infrastructure Powering Payment Platforms
Founded in 2015 by Richie Serna, San Francisco-based Finix is building the “Twilio of payments,” enabling software companies and marketplaces to embed payment processing capabilities with minimal effort. The company’s low-code/no-code solution helps businesses that lack specialized payment teams quickly become payment processors.
With $133 million in funding from investors including Sequoia and Visa, Finix is capitalizing on the massive digital payments market, projected to exceed $10 trillion globally by 2025. By serving the infrastructure layer in this boom—targeting mid-tier enterprises that need modern payment technology—Finix is addressing a multi-billion-dollar opportunity.
What sets Finix apart is its combination of flexibility and ease of use. Its transaction-driven revenue model means that as client payment volumes grow, Finix’s revenue grows in tandem.
2. Flex: The Digital CFO for Small Businesses
Founded in 2020 by Zaid Rahman and Hadi Solh, Miami-based Flex has created an all-in-one financial hub for small businesses. The platform combines business banking, payments, expense management, and credit lines into one streamlined solution.
Flex addresses a critical problem: small business owners often juggle multiple financial tools and struggle with cash flow management. The company’s integrated approach allows SMBs to manage all financial operations through a single dashboard while providing access to capital when needed.
With $20 million in equity and $100 million in debt financing secured in 2023, Flex is targeting the enormous SMB market—approximately 33 million small businesses in the U.S. alone. According to Hustle Fund’s Eric Bahn, “Flex has raised far less capital, yet still has expanded into huge revenue quietly,” demonstrating impressive efficiency compared to competitors like Brex and Ramp.
3. Clavaa: Transforming Loyalty and Payments for Main Street
Launched in late 2022, Clavaa takes a unique approach by helping independent merchants offer Starbucks-style loyalty programs without paying credit card processing fees. The company provides small businesses with branded digital wallet apps that customers use for payment while automatically earning rewards.
Unlike most startups on this list, Clavaa has chosen to bootstrap rather than raise venture capital—focusing on sustainable growth through revenue rather than rapid expansion through outside funding.
Clavaa’s innovation is transforming the 2-3% that merchants would have paid in credit card fees into customer loyalty investments. Businesses using the best loyalty program platform have reportedly seen up to 40% increases in repeat visits. With hundreds of thousands of potential small business customers across the U.S. collectively paying tens of billions in card processing fees annually, Clavaa’s zero-fee loyalty app market potential is substantial.
4. GlossGenius: Vertical SaaS for the Beauty Industry
Founded in 2016 by former makeup artist Danielle Cohen-Shohet and Karim Butt, GlossGenius provides an all-in-one business management platform specifically tailored to the beauty and wellness industry. The company combines appointment scheduling, payments processing, client CRM, inventory tracking, and marketing tools in a sleek, industry-specific package.
With approximately $78 million raised to date, including a $28 million Series C in 2023 led by L Catterton, GlossGenius is growing rapidly. The company reported $62 million in gross revenue for 2023, up from $38 million the previous year.
What makes GlossGenius special is its deep vertical focus. By creating software specifically for salons and spas, the company better serves an industry that generates roughly $60 billion annually in the U.S. alone. GlossGenius further monetizes through payment processing, taking a cut of the billions in transactions flowing through its platform.
5. Kikoff: Democratizing Credit Building
Founded in 2019 by Cynthia Chen and Christophe Chong, San Francisco-based Kikoff helps people build or rebuild their credit scores through accessible financial products. Its primary offering—a small revolving credit line that can be used in Kikoff’s online store—allows users to establish payment history that gets reported to major credit bureaus.
With over one million users and only $42.5 million raised, Kikoff has achieved remarkable traction efficiently. The company targets the approximately 45 million U.S. adults with no credit score and tens of millions more with subprime credit.
Kikoff stands out for reaching profitability early while maintaining impressive growth. According to investor Alexandra Choo of Portage Ventures, the company “is growing incredibly quickly” despite minimal funding. With plans starting at just $5-10 monthly and no interest charges, Kikoff offers an accessible alternative to traditional credit-building products.
The Bottom Line
These five companies represent different facets of fintech innovation—from payment infrastructure and small business financial management to vertical SaaS and consumer credit solutions. Each has demonstrated strong product-market fit, efficient growth metrics, and addresses substantial market opportunities.
While they might not yet command the headlines of established fintech giants, their trajectories suggest they could join the unicorn club by 2027, reshaping their respective corners of the financial services landscape in the process.