Payments platform Dwolla has raised $21m in a venture round led by Foundry Group to drive innovation in B2B payments.

The round was also joined by Union Square Ventures, Park West Asset Management, Detroit Venture Partners, Firebrand Ventures and Next Level Ventures.

Traeger CEO Jeremy Andrus also participated in the round as an individual investor.

Dwolla plans to use the fresh capital to spur growth initiatives with international payments and expansive partner relationships through a partner API.

The firm also plans to further accelerate its product roadmap focused on real-time payments experience.

Dwolla CEO Brady Harris said: “This funding will allow us to fully capitalize on the momentum we’re experiencing, as we continue to scale our tech stack with innovative solutions and invest in go-to-market capabilities with international expansion and technical integrations with exciting fintech partners.”

According to Dwolla, its transaction volume witnessed an 80% increase since the outbreak of the Covid-19 pandemic. It is expected to cross $30bn this year.

The firm onboarded nearly 3 million end users to the Dwolla platform through the first half of this year.

Andrus said: “Dwolla is disrupting an industry whose benchmark of checkbooks and hard cash as the primary sources of payment is outdated and inefficient.

“The Dwolla team’s ability to develop new solutions, leverage new tools and take a modern approach to a traditional process is tenfold. When investing in companies, those are all important aspects I look for.

“Dwolla exceeds the expectations of a company that can scale their operations to meet the evolving needs of a modern business.”

To date, Dwolla has raised over $70m in capital from investors such as Andreesen Horowitz, High Alpha, Thrive Capital, Ludlow Ventures, amongst others.

In April this year, Dwolla launched access to Real-Time Payments. This instant payment option can send money directly to a bank account in seconds using the RTP Network.

In 2019, Dwolla partnered with Currencycloud to support international payments for its clients.