Total amount raised
$520 Millions
Latest funding date
August, 2022
Location
Parafin has successfully raised $100 million over three funding rounds, achieving a valuation of $750 million. The company offers financial infrastructure services tailored for small businesses, focusing on embedded finance solutions.
Keep reading to explore the intricacies of Parafin's fundraising journey and the investors backing this innovative platform.
What Is Parafin?
Founded in August 2020, Parafin is a financial infrastructure company based in San Francisco, California. The company was established by Ralph Furman, Sahill Poddar, and Vineet Goel.
Parafin specializes in providing embedded financial products for small businesses, simplifying the complexities of capital markets, underwriting, servicing, compliance, and customer support. Their services are designed to help small businesses grow and thrive.
With a team of 51-100 employees, Parafin has partnered with major platforms like Amazon, Walmart, DoorDash, and TikTok, extending over $8 billion in offers to hundreds of thousands of businesses.
How Much Funding Has Parafin Raised?
- Seed Round
- Amount Raised: $4M
- Date: May 2020
- Lead Investors: Ribbit Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart operations and develop initial financial infrastructure services.
- Series A
- Amount Raised: $30M
- Date: September 2021
- Lead Investors: Thrive Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and scale the platform's capabilities.
- Debt Financing
- Amount Raised: $150M
- Date: August 2022
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity for extending financial offers to small businesses.
- Series B
- Amount Raised: $60M
- Date: August 2022
- Lead Investors: GIC
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To help platforms offer small businesses the financial services they need.
- Debt Financing
- Amount Raised: $125M
- Date: April 2024
- Lead Investors: Silicon Valley Bank, Trinity Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's rapid growth and financial product offerings.
- Debt Financing
- Amount Raised: $93M
- Date: August 2024
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further enhance liquidity for financial services.
- Series C
- Amount Raised: $100M
- Date: December 2024
- Lead Investors: Notable Capital
- Valuation at Round: $750M
- Motivation Behind the Round: To scale existing products, develop new ones, and expand into new geographies.
Total Amount Raised: $562M. Current Valuation: $750M.
Key Investors
- Notable Capital
- Details: Notable Capital is a venture capital firm known for investing in high-growth technology companies. They led Parafin's Series C funding round.
- Investment Focus Areas: Technology, innovative startups, high-growth companies.
- Notable Investments: Not specified in the sources.
- Redpoint Ventures
- Details: Redpoint Ventures is a venture capital firm that partners with visionary founders to create new markets or redefine existing ones. They participated in Parafin's Series C funding round.
- Investment Focus Areas: Technology, healthcare, consumer and enterprise technology.
- Notable Investments: Stripe, Snowflake, Twilio.
- Ribbit Capital
- Details: Ribbit Capital is a venture capital firm specializing in financial technology. They have been involved in multiple funding rounds for Parafin, including the Series C.
- Investment Focus Areas: Fintech, financial services.
- Notable Investments: Robinhood, Coinbase, Credit Karma.
- Thrive Capital
- Details: Thrive Capital is a venture capital firm that invests in internet and software companies. They have participated in several funding rounds for Parafin, including the Series C.
- Investment Focus Areas: Internet, software, technology.
- Notable Investments: Instagram, Slack, Stripe.
- GIC
- Details: GIC is a sovereign wealth fund established by the Government of Singapore. They have been a recurring investor in Parafin, including in the Series C round.
- Investment Focus Areas: Equities, fixed income, real estate, private equity.
- Notable Investments: Alibaba, Airbnb, SpaceX.
What's Next for Parafin?
Parafin's future is brimming with opportunities. The company plans to scale its existing products, develop new ones, and expand into new geographies. With nearly $1 billion funded annually for small businesses and a 400% growth in volumes since its Series B round, the potential for growth is substantial. Deepening partnerships with major platforms like Amazon, Walmart, and DoorDash will further solidify its market position.
Future fundraising seems likely as Parafin continues to grow. The successful Series C round and rapid expansion suggest that additional funding rounds could support further scaling and development. Potential acquisitions of smaller fintech companies or technologies may also be on the horizon to enhance their service offerings.
However, challenges remain. Competition from other fintech companies and traditional banks, ensuring the accuracy of machine learning-based risk models, and navigating regulatory requirements in new geographies are significant hurdles. Maintaining growth while expanding into new markets will require careful strategy and execution.
Use Clay to Get Funding Data
Sales professionals, take your game to the next level by leveraging Clay's platform to access comprehensive fundraising data on companies like Parafin and gather other critical business insights. Sign up for free and unlock the potential to drive your sales strategy with unparalleled data and insights.
