Multiple global financial institutions have invested in the US marketplace lender Kabbage.
Reverence Capital Partners, ING, Santander InnoVentures and Scotiabank are just a few names of the large group of investors that today has acquired an equity stake in the online marketplace lender Kabbage through a $135m Series E round. Additional names include new investors Yuan Capital (based in China) and Japan’s Recruit Strategic Partners, coupled with existing investors BlueRun Ventures, UPS Strategic Enterprise Fund, and Thomvest Ventures.
The platform has also announced an increased credit facility, taking the total amount available to over $900 million.
Kabbage is a financial services data and technology online platform that provides fully automated funding to small businesses and consumers in just a few clicks. This successful round increases the company’s total equity raised to date to $240m, and it will allow Kabbage to serve an expanded audience in the SMB community, as has been stated on its blog.
The announcement follows on from the platform’s achievement of several recent growth milestones: the facilitation of $5 million of daily lending and more than $1 billion in annual funding for small businesses. The platform has also partnered with major financial services players, including MasterCard, Experian, Sage and UPS, as well as launching Kabbage Card to provide customers with improved flexibility.
Investors are feeling confident about the platform’s ability to scale its business model further and to acquire new customers in the future. Indeed, Milton Berlinski, Managing Partner of Reverence Capital Partners and new member of Kabbage’s Board of Directors, commented:
“Lending is changing rapidly, with small businesses and consumers demanding a simpler and more customized experience. While Kabbage’s growth is remarkable, we are more impressed with Kabbage’s ability to scale while economically acquiring customers, decreasing risk and gaining significant operating efficiency.”
Similarly, Kabbage’s management is excited about the successful closure of the round, not only due to the amount of money raised, but also owing to the large variety of global investors that now hold a stake in the company.
Rob Frohwein, Kabbage co-founder and Chief Executive Officer, explained:
“We are thrilled to announce our partnership with Reverence Capital Partners, ING, Santander InnoVentures, and Scotiabank, global leaders with deep expertise across financial services and technology. It is particularly gratifying to welcome three of the top fifty global banks to our shareholder base as we continue to expand our reach internationally, delivering an unparalleled experience to small businesses and consumers worldwide.”
A valuation for this Series E round has not been disclosed, but according to the Wall Street Journal, the funding was based on a billion dollar valuation. If that turns out to be true, it would mean that Kabbage has reached the fabled “unicorn” status – the term used by industry’s insiders to describe privately owned tech companies worth $1 billion or more.
Join AltFi at their fourth annual Australasia Summit to examine the future of lending in Australia. Where we present best practices across, technology, partnerships, open banking, governance, data access, consumer experience, capital markets & funding, the role of government and regulation.