Relay secures USD $50 million to fuel small business growth

Relay has secured USD $50 million in financing from General Catalyst's Customer Value Fund as it surpasses USD $1.3 billion in managed deposits and 150,000 small business customers.

The funding is intended to support customer acquisition rather than product development, allowing Relay to use existing investment for product work while expanding its reach among US small businesses. Since its USD $32.2 million Series B round, the company has grown quickly and says it is on track to increase revenue 3.2 times by the end of 2026.

Relay offers digital banking and money management tools for small businesses, combining accounts, cards, bill payments, invoices and lending on one platform. It recently added Relay Capital term loans, broadening its offering for owners seeking funding alongside day-to-day financial management.

The latest financing comes as small business owners face pressure from higher operating costs, supply chain disruption and labour market constraints. Relay argues that many still rely on separate tools for payments, expense tracking and invoicing, leaving them with limited visibility over cash flow.

General Catalyst's Customer Value Fund uses a financing model that differs from a traditional equity round. According to the companies, the structure is designed to help businesses spend more on growth without diverting attention or resources from product investment.

Relay has positioned itself as a central financial system for small businesses. Its reported deposit base and customer count suggest it has built a sizeable presence in the crowded market for digital financial services aimed at smaller firms.

The investment marks a new stage in Relay's expansion. It now oversees more than USD $1.3 billion in customer deposits through Thread Bank and serves more than 150,000 small businesses.

Founded to serve what it describes as self-made entrepreneurs, Relay is trying to capture demand from business owners seeking more control over cash flow and a simpler way to manage multiple financial tasks. The focus reflects a broader push across financial technology to bundle services once handled by separate providers.

For investors, the attraction lies in both scale and customer demand. A growing customer base can reduce the risk of backing further commercial expansion, particularly when a company can show traction in deposits and product adoption.

"Every dollar invested in Relay supports passionate folks who work hard to build their businesses and realize their ambitions. This investment is a vote of confidence in the true value we deliver to those self-made entrepreneurs, so they can put every dollar to work," said Yoseph West, Co-Founder and Chief Executive Officer of Relay.

On the company's plans for the new capital, West added: "This investment is the spark that will ignite our brand footprint and market presence, so that we can bring cash flow clarity to even more American small businesses."

General Catalyst tied its backing to Relay's customer momentum and its view of small business needs.

"Relay has proven its deep understanding of what small business owners actually need to succeed, with a product that clearly resonates based on the strength of its customer acquisition machine. We're excited to help them step on the gas with CVF and enable this next phase of growth," said Andrew Ziperski, Partner at General Catalyst's Customer Value Fund.