Kabbage secures $250 million investment
Written by Anthony Strzalek
Kabbage, a US-based online lender to small businesses, has announced a $250 million strategic growth investment from Japan’s SoftBank.
The quarter of a billion dollar investment represents the largest equity raise in the online small business lending segment to date, with the funding brings Kabbage’s total equity raised to nearly $500 million.
The funding will help Kabbage expand its lending products for small businesses and explore non-lending products and services for those customers. The company will also use the funds to accelerate its SaaS platform business that powers online SMB lending for global banks.
The closing of the investment is subject to regulatory and other customary closing conditions and is expected to be completed in third quarter 2017.
Kabbage is a fully automated technology and data platform that provides access to funding directly to small businesses and powers lending for large global banks. The company currently operates in North America and Europe with plans to expand to Asia.
Rob Frohwein, co-founder and CEO of Kabbage, said: “Our partnership with SoftBank accelerates our goal of providing a suite of services to small businesses globally that is centered on real-time and persistent access to a wide variety of data.
“SoftBank's scale, global reach, relationships and unparalleled expertise in building transformative industry leaders make them an ideal partner for Kabbage.”
David Thevenon, managing director at SoftBank, added: “SoftBank invests in market-leading companies that dramatically improve the customer experience and expand markets through breakthrough technology and data capabilities. We invested in Kabbage because their unique automated lending platform leverages open data networks and best positions them to empower small businesses around the world.”