Bread raises $126m in equity and debt financing
Written by Anthony Strzalek
Bread, a US FinTech startup that builds ‘pay over time’solutions for online merchants, has announced the completion of a $126 million equity and debt financing round.
Menlo Ventures led the equity round, with participation from Bessemer Venture Partners, RRE Ventures, and others. As part of the round, Mark Siegel, Menlo’s managing partner, will be joining Bread’s board of directors. The debt facility was provided by Victory Park Capital.
Bread aims to improve conversion rates and raise the average order value for retailers. For instance, an online furniture store could use Bread’s technology to offer its consumers the ability to pay for a sofa in ‘easy-to-understand’ monthly instalments.
The startup said that it will use the new equity capital to grow its portfolio of merchant partners, as well as continue to grow its engineering team to build solutions that further improve the product and consumer experience.
With Bread, different payment plans and different experiences can be tailored to a merchant’s product set.
Josh Abramowitz, co-founder and CEO of Bread, said: “We are building online-focused, next-generation solutions. Current private-label options were built for an offline world. They don’t speak the interactive language of e-commerce and don’t work well on the web. Bread’s technology offers a different type of solution. It is optimised for the web, and designed to bring purchase finance into the online era.”
Tyler Sosin, a partner at Menlo, added: “What impressed us most is Bread’s intense devotion to its consumers and its merchants. The Bread team is exceptionally responsive, helps us build out our marketing strategy for financing, and works with our team to create the best possible customer experience every time.”