The funding comes hot on the heels of Swipely being named to Forbes’ list of America’s Most Promising Companies, and marks the largest Series B investment in a Rhode Island, US software company in history.
Existing investors First Round Capital, Greylock Partners and Index Ventures also backed the latest round, which brought Swipely’s total venture financing to $20.5m.
The company has grown to manage more than $700m of annual sales for merchants in 130 US cities and towns since entering the sector in June last year.
Shasta Ventures partner Sean Flynn said, “We are excited to be part of a company that finally brings the power of data to the offline world, ultimately translating into happy customers and more revenue.
“It’s a major innovation in payments and marketing for small business, and we hope it will transform the way merchants understand and engage with their customers.”
Earlier this month fellow venture capital firm Andreessen Horowitz led a $16.5m third funding round for online payment network Dwolla, to expand upon its $5m Series B round from February 2012.
Existing investors Village Ventures, Thrive Capital, and Union Square Ventures also backed the round.
The company’s technology allows users to send, request and accept money via the internet with the use of emails and social media.
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