Montréal-founded FinTech startup Zūm Rails has announced the permanent relocation of its new CEO Miles Schwartz from Canada to its newly established United States (US) headquarters in Miami, Florida. After taking his talents to South Beach, Schwartz will lead the company’s new US growth initiative.
Zūm Rails said it will continue scaling its work in Canada as part of an overall North American expansion strategy.
The move follows a 75 percent increase in Zūm Rails’ US business over the last year, the company said in a statement, adding that it is now preparing for at least 50 percent of its overall revenue to originate stateside within the next 18 months.
Zūm Rails said it selected Miami due to its “emergence as a destination for some of the country’s largest technology and finance corporations,” with the new location bringing the company closer to “leading FinTech talent and resources.”
“The opening of our Miami headquarters marks a new chapter for myself and the company,” Schwartz said in a statement. “We’re ready to roll up our sleeves and make sure that any US company that’s processing payments has the opportunity to take advantage of what’s available at the intersection of open banking and instant payments.”
The new headquarters will house the startup’s sales, engineering, risk and compliance, and customer success teams.
Zūm Rails said its entire suite of offerings is now available to businesses in the US. The startup noted that it will continue scaling its work in Canada as part of an overall North American expansion strategy, with all of its new capabilities serving both markets.
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Zūm Rails offers an omni-rail payment solution for businesses that processes digital payments, manages invoices and subscriptions, and collects customer data. The startup was founded in 2020 by Schwartz and Marc Milewski, alumni of Canadian FinTech firms Flinks and Versapay, respectively, alongside CTO Marcel Ferreira.
Schwartz began as Zūm Rails’ chief sales officer, while Milewski acted as CEO. Schwartz told BetaKit in an email that he took on the CEO job earlier this year as part of his role in growing the US market, adding that the team all thought it made sense given the stage of the company and his revenue focus. Schwartz noted that Milewski is still involved as a co-founder.
The startup raised a $10.5 million CAD Series A round led by sole investor Arthur Ventures in February. Schwartz told BetaKit at the time that Zūm Rails had achieved $10 million in annual recurring revenue (ARR) and launched in the US in 2023.
Zūm Rails said it would use the capital to scale its platform in the US and develop new banking-as-a-service capabilities. In April, Schwartz said in a LinkedIn post that Zūm Rails grew by an additional $5 million ARR in the previous six months.
Zūm Rails claims it is used by 1,000 businesses in Canada and has achieved a “nine-figure valuation.”
Feature image courtesy Zūm Rails.