Dots, a San Francisco-based global payouts platform for marketplaces and service-based businesses, has secured $8.9 million in Series A funding led by DCM with participation from Y Combinator.
The company, which is profitable, has now raised more than $14.6 million to date and processes over $150 million in payouts each month, representing 400% year-over-year revenue growth. Dots has delivered more than $1 billion to over one million gig workers, creators and contractors worldwide.
Dots said the new capital will be used to expand its product offering, including adding financial features such as credit card processing, accounts payable, and accounts receivable. The company also plans to support international expansion and hire additional engineering talent.
In connection with the financing, Dots introduced two new enhancements to its platform. The company’s platform is now entirely self-serve, allowing customers to integrate Dots into their existing systems and customize payouts without outside assistance, enabling businesses to onboard and begin sending payments within hours. Dots also launched Dots Control, an anti-fraud feature designed to help companies identify and stop suspicious payouts and create custom rules to automate fraud detection and prevention.
KEY QUOTES:
“Everyone talks about the future of payments, but most of that innovation has focused on companies receiving payment, not paying others. The payout layer is broken, with companies and marketplaces having to reinvent the wheel to handle compliance, onboarding and cross-border disbursements. As a result, payments are slow. Dots solves this problem by unifying bank transfers, PayPal, Venmo, Cash App, and stablecoins under a single API, ensuring payees receive funds quickly, regardless of where they are based or their preferred payment type. This translates into greater loyalty among contractors and creators.”
Sahil Hasan, Co-Founder And CEO Of Dots
“Beyond the large and growing total addressable market – the global payouts market is projected to triple by 2033 and the gig economy payments market is already in excess of $582 billion – what makes Dots compelling is its focus on both the developer and payee experience. When workers and creators actually want to get paid through your platform, the result is an engine that helps to not only address compliance and payments, but also retain the best talent.”
Ibrahim AlSuwaidi, Partner At DCM
