SAN FRANCISCO–In a move that is reminiscent of credit unions’ history with select employee groups (SEGs), a fintech has received new funding to expand its offerings of “bespoke banking lines” for specific industries.

The company, Slash, started out by providing banking services to sneaker resellers before pivoting to new industries.

Slash has now announced it has closed a $41 million Series B round at a $370 million valuation led by Goodwater Capital. The startup will use the funding, which comes two years after it raised   $19 million in Series A and seed funding, to expand its business providing specialized financial services as a neo-bank, according to Fortune.

Less Overhead

“The neo-bank model means offering a limited array of banking services without the overhead of physical branches or a full-blown bank license,” Fortune explained.

The strategy paid off, Fortune reported, with Slash’s revenue exploding and the startup raising seed and Series A rounds from top investors.

It pivoted to its new strategy after Kanye West made a number of anti-Semitic statements that led Adidas to end a partnership that had been one of the sneaker resellers’ most lucrative lines of business: Yeezys. 

Reworked Infrastructure

For the past 18 months, Fortune reported that Slash reworked its existing infrastructure to target other sectors: namely, performance marketing agencies, crypto firms, and HVAC operators. The pivot worked, with the startup now processing around $300 million a month on its cards. “

“If we continue solving these niche, vertical, specific financial workflows for businesses across different industries,” one of its co-founders told Fortune, “Then we can sneakily become one of the largest commercial credit card issuers in the country.”