Total amount raised
$2.5 Billions
Latest funding date
Location
Kabbage has successfully raised significant funding over multiple rounds, culminating in its acquisition by American Express for $850 million. The platform offers a range of cash flow management solutions tailored for small businesses, including lines of credit and business checking accounts.
Keep reading to explore the intricacies of Kabbage's fundraising journey and the investors backing this innovative platform.
What Is Kabbage?
Kabbage, founded in 2009 by Kathryn Petralia, Marc Gorlin, and Rob Frohwein, is a financial technology company based in Atlanta, Georgia. The company revolutionized the way small businesses access working capital by automating the application process, making it entirely online.
Specializing in cash flow management solutions, Kabbage offers lines of credit up to $250,000, leveraging business data to assess and adjust credit lines throughout the customer lifecycle. This innovative approach has made it a go-to resource for small businesses seeking financial flexibility.
With a workforce of 251-500 employees, Kabbage has grown significantly, culminating in its acquisition by American Express in 2020. The company's commitment to simplifying financial processes continues to benefit small businesses across the United States.
How Much Funding Has Kabbage Raised?
- Series C
- Amount Raised: $30M
- Date: Sep 2012
- Lead Investors: Thomvest Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand its lending platform and reach more small businesses.
- Series D
- Amount Raised: $50M
- Date: May 2014
- Lead Investors: SoftBank Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enhance its technology platform.
- Debt Financing
- Amount Raised: $270M
- Date: Apr 2014
- Lead Investors: Guggenheim Securities
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support its growing loan portfolio.
- Series E
- Amount Raised: $135M
- Date: Sep 2015
- Lead Investors: Reverence Capital Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand its lending reach and deliver instant capital to small businesses.
- Debt Financing
- Amount Raised: $500M
- Date: Mar 2017
- Lead Investors: -
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To diversify debt-funding sources and support its lending activities.
- Series F
- Amount Raised: $250M
- Date: Aug 2017
- Lead Investors: SoftBank Vision Fund
- Valuation at Round: $1.2B
- Motivation Behind the Round: To secure the largest asset-backed securitizations of small business loans in the online lending industry.
- Debt Financing
- Amount Raised: $200M
- Date: Nov 2017
- Lead Investors: Credit Suisse
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand its loan offerings and show confidence from lenders.
- Debt Financing
- Amount Raised: $700M
- Date: Apr 2019
- Lead Investors: -
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's lending activities.
- Debt Financing
- Amount Raised: $200M
- Date: Jul 2019
- Lead Investors: -
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To diversify Kabbage’s committed sources of funding and meet the escalating demand for capital access among small businesses.
Total Amount Raised: $2.6B. Current Valuation: $1.2B.
Key Investors
- SoftBank Vision Fund
- Details: SoftBank Vision Fund is a global technology investment firm known for its substantial investments in innovative companies. It is managed by SoftBank Group, a Japanese multinational conglomerate.
- Investment Focus Areas: Technology, telecommunications, e-commerce.
- Notable Investments: Uber, WeWork, Alibaba.
- Reverence Capital Partners
- Details: Reverence Capital Partners is a private investment firm that focuses on the financial services industry. The firm was founded by experienced professionals with a background in financial services and private equity.
- Investment Focus Areas: Financial services, asset management, insurance.
- Notable Investments: Russell Investments, Victory Capital, Diamond Resorts.
- Credit Suisse
- Details: Credit Suisse is a leading global wealth manager with strong investment banking capabilities. It is headquartered in Zurich, Switzerland, and operates in over 50 countries.
- Investment Focus Areas: Wealth management, investment banking, asset management.
- Notable Investments: Not publicly disclosed.
- Thomvest Ventures
- Details: Thomvest Ventures is a venture capital firm that invests in early-stage technology companies. It is backed by Peter J. Thomson, a member of the Thomson family, which owns Thomson Reuters.
- Investment Focus Areas: Fintech, cybersecurity, enterprise software.
- Notable Investments: LendingClub, SoFi, Bill.com.
- Guggenheim Securities
- Details: Guggenheim Securities is the investment banking and capital markets business of Guggenheim Partners. The firm provides advisory, financing, sales, and trading services.
- Investment Focus Areas: Financial services, media, healthcare.
- Notable Investments: Not publicly disclosed.
What's Next for Kabbage?
As Kabbage looks to the future, the opportunities are vast. With a recent $200 million revolving credit facility and a $700 million securitization, the company is well-positioned to expand its AI-based loan platform. Partnerships with banks and Alibaba further enhance its reach, potentially allowing Kabbage to loan out between $2.4 billion and $3 billion this year.
Future fundraising could see more securitizations or credit facilities to meet growing demand. However, challenges such as competition from traditional banks and other fintech companies, as well as maintaining the accuracy of AI-based assessments, remain. Regulatory hurdles in different markets could also pose significant obstacles.
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