Lithic

Lithic (formerly known as Privacy.com) was founded as a B2C platform for customers to generate virtual and temporary debit cards for online use, to protect user identity and payment details from fraud. In H2 2020, the company launched its “Lithic” API to issue and maintain the debit and credit cards. The company continues to offer its B2C platform under the “Privacy.com” brand and has issued over 10 million virtual card numbers as of May 2021.

The Lithic platform mainly targets early-stage startup enterprises and FinTechs, unlike peers Marqeta and Galileo, which typically cater to more established businesses. The platform charges a fee per card issued and interchange fees based on the volume of transactions handled by the API. It offers a “Starter” package for developers as well as an “Enterprise” package with advanced features such as, physical cards, advanced know-your-customer (KYC) features, branded digital wallet cards, a dedicated success manager, and higher revenue shares, among others. The infrastructure is pre-integrated with multiple banks, and can be used for a range of use cases, including expense management platforms, online travels, insurance, online marketplaces, etc.

Lithic noted that the annual processing volume handled by the platform surpassed USD 1 billion as of July 2021, and that its API developer platform grew 4x over the preceding eight months.

In May 2021, the company rebranded to Lithic to highlight its increased focus on the newer, card-issuing platform (B2B business). Alongside the rebranding, Lithic also raised USD 43 million in a Series B funding round led by Bessemer Venture Partners to invest in expanding the tools and tech offered for its Lithic platform while also enhancing its Privacy.com offering.

Moreover, Lithic subsequently raised USD 60 million in Series C funding in July 2021, led by Stripes. The funds were earmarked for recruitment to meet the demand for its developer platform and may also be used in strategic acquisitions to enhance Lithic’s core offering.