Businesses spinoff from their parent companies for a bevy of reasons, but often the motivation behind the split is so both companies can become be financially successful as separate entities. That is the reason behind PortX’s spinoff from ModusBox.
Recently ModusBox announced that PortX would become its own company in order to better serve customers in the fintech industry and pursue new business ventures. In addition to launching as a separate company, PortX secured $10 million in a Series A round co-led by FUSE and BankTech Ventures.
While both companies focus on developing integrated payment solutions, there are several nuances between the two. ModusBox focuses on creating custom payment networks for government and commercial organizations. PortX, on the hand, makes an integrated payment platform for financial companies.
“Despite the differences between ModusBox and PortX, our companies remain focused on a shared mission to create universal access to reimagined financial services that improve people’s lives,” David Wexler, CEO of ModusBox, said in a statement.
ModusBox was co-founded in 2013 by Wexler and Kent Brown as a business-to-business integration company for electronic data interchange for the logistics industry. The company was bootstrapped in the early stages but raised $7.5 million in Series A funding earlier this year.
