Spiral, a New York-based startup has raised $28 million to launch its ‘Impact-as-a-Service’ platform designed to help banks and fintechs embed sustainability, ESG, CSR and social impact into their businesses.

The round, which brings Spiral’s total funding to $42 million, was led by Team8 and joined by Euclidean Capital and Intuition Fund, Communitas Capital, Phoenix and Nidoco AB.

The funds have been earmarked for the launch of Spiral’s “impact-as-a-service platform.” It will also help the company expand its offering to over 10,000 financial institutions in the US, including banks, credit unions and fintech companies.

Co-founded by former Morgan Stanley managing director Shawn Melamed and ex-Skype head of product and growth Dan Blumenfeld in 2019, Spiral launched a socially responsible consumer banking app in 2021, which grew to over 65,000 customers and $65 million in transactions in under a year.

Spiral has since pivoted to a B2B model by partnering with financial institutions, rather than offering an independent app, to extend its reach.

“After launching our own mission-driven consumer banking app and witnessing its rapid growth, we saw that rather than offering an independent banking app, the greatest value would be to partner with other financial institutions,” said Melamed.