Prelude, a tech startup focused on improving mobile onboarding and verification processes, has successfully raised $8 million in a seed funding round. Led by Singular and Seedcamp, the funding will support the company’s mission to streamline SMS verification, reduce fraud, and enhance the user experience for businesses worldwide. With this fresh capital, Prelude is poised to expand its services and provide a comprehensive suite of tools to make mobile onboarding smoother, more secure, and cost-effective.

Addressing the Challenges of SMS Verification

Prelude was founded in 2022 by Matias and Quentin, who previously worked at Zenly, where they saw firsthand the challenges companies face with SMS verification. SMS verification, a widely used method for user authentication, was one of Zenly’s largest expenses. Furthermore, a significant portion of the budget—around 30%—was lost to fraud, and there was limited visibility into the costs involved. This lack of transparency in existing verification systems drove the founders to create a better solution.

Their answer was Prelude, a platform designed to optimize SMS routing, cutting costs and reducing fraud. By dynamically choosing the most efficient and cost-effective paths for SMS delivery, Prelude has helped businesses save up to 40% on verification costs, while increasing conversion rates on verification messages to 95%. This unique approach has allowed the company to stand out in a competitive market.

Expanding Beyond SMS Verification

While SMS verification remains at the core of Prelude’s offering, the company is committed to expanding its product suite to tackle a broader challenge: user onboarding and retention. Many businesses struggle to turn new users into loyal customers, and Prelude aims to address this by providing a seamless, secure, and trustworthy onboarding experience from the very first interaction.

“Our goal is to help businesses master user onboarding, trust, and retention with a suite of mobile-first services designed for seamless user experiences,” said CEO Matias. Prelude’s expansion plans include developing new tools to improve every stage of the onboarding process, creating a more engaging experience for users and a more efficient solution for businesses.

Strong Investor Support

The latest funding round, co-led by Singular and Seedcamp, highlights strong investor confidence in Prelude’s vision and technology. Henri Tilloy, Partner at Singular, expressed his enthusiasm for the company’s potential. “Prelude is reshaping phone verification and authentication,” Tilloy remarked. “With just a single line of code, businesses can cut costs, improve fraud protection, and increase conversion rates. We’re excited to support Prelude as they transform the user onboarding space.”

The backing from Singular and Seedcamp reflects the growing interest in solutions that prioritize user security, cost reduction, and enhanced user experience. Prelude’s innovative approach has garnered attention from investors who recognize the startup’s potential to lead the charge in mobile-first onboarding.

What’s Next for Prelude?

With the newly raised $8 million, Prelude plans to scale its operations and expand its suite of APIs designed to improve the entire user onboarding process. The company’s platform offers developers a simple, efficient way to implement SMS verification and other onboarding features with minimal code, streamlining the integration process.

Prelude’s broader goal is to provide a comprehensive suite of mobile-first services that can help businesses build trust with users from the moment they sign up. The company is committed to continually enhancing its offerings and customer support to meet the evolving needs of businesses looking to grow and retain their user base securely.

Prelude’s $8 million seed funding marks an exciting step forward in its mission to revolutionize mobile onboarding and SMS verification. With a focus on reducing costs, preventing fraud, and improving user experiences, the company is poised to become a leader in the mobile-first onboarding space. The support from Singular and Seedcamp reflects strong confidence in Prelude’s potential, and with this new funding, the company is well-positioned to continue innovating and expanding its suite of services. As businesses seek to streamline their user verification and onboarding processes, Prelude’s solutions offer a powerful and cost-effective way to enhance user trust and retention.