Online small-and-medium-sized business (SMB) alternate loan underwriter has raised more industry waves by closing out a $50 million series D equity financing round. This follows the company’s announcement last month of the closing of a $270 million credit facility that will allow small businesses that use its online platform to extend lines of credit and borrow working capital.
The new financing will go toward building out the company’s current business base of SMB’s through marketing outreach and international expansion, particularly into Canada, the United Kingdom and Asia. The funds will further be used to develop what CEO Rob Frohwein refers to as Kabbage’s “data reactor.”
We don’t believe in data exhaust; it connotes pollution, a byproduct of a more efficient process. You might as well call it data excrement,” Frohwein said, reports Tech Crunch. “We have built a platform that harnesses the value derived from data creation and assimilation, enabling our customers to benefit in a way that was previously unimaginable.”
It is this “data reactor” that has allowed Kabbage to stand-out in the space where competitors like Lending Club with a nearly $4 billion valuation and Prosper, which just announced a $70 million funding round.
“Kabbage is using data and technology in a highly innovative way to transform the entire small business financing sector,” said Steve Murray, Partner at SoftBank Capital in a released statement. “It is the kind of game-changing opportunity in which SoftBank likes to invest. Kabbage’s powerful underwriting platform which has been so successful here in the US has massive global potential.”
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