Photo: Andrew Kortina/LinkedIn
In 2009, two college roommates Andrew Kortina and Iqram Magdon-Ismai founded Venmo.Venmo has spent the past three years making it easier for friends to exchange money via mobile devices. It makes lending money easier as well as splitting bills.
Today payment company and credit card processor Braintree has acquired Kortina and Ismai’s startup for $26.2 million. Venmo has only raised $2 million to date, so it should be a big win for everyone involved.
The New York Times, which first broke the news, says Venmo is processing about $10 million per month and is on track to process $250 million annually.
Braintree currently has 30 million users and it is on major e-commerce sites like Fab and LivingSocial. Its chief executive Bill Ready says Venmo was acquired to prepare Braintree for the impending mobile commerce future.
“Of the $4.5 billion in sales [Braintree] processes each year, $1 billion of those are on mobile phones,” The New York Times reports. “Mr. Ready expects that folding Venmo into their business will help them take on larger, more established rivals in the online payments industry, including PayPal, as well as other companies, like Google.”