Kabbage Inc., an Atlanta, GA-based financial services, technology and data platform serving small businesses globally, received a $250m equity investment.
A subsidiary of SoftBank Group Corp. made the investment, which represents the largest equity raise in the online small business lending segment to date.
The funding – whose closing is subject to regulatory and other customary closing conditions and is expected to be completed in third quarter 2017 – brings Kabbage’s total equity raised to nearly $500.
The company intends to use the funds to expand its lending products for small businesses, explore non-lending products and services for customers, and accelerate its SaaS platform business for online SMB lending for global banks.
Led by Rob Frohwein, co-founder and CEO, 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.
Since launching six years ago, Kabbage has provided nearly $3.5 billion in funding to more than 100,000 small businesses and powered automated lending for ING, Santander and Scotiabank. The company is also funded and backed by BlueRun Ventures, Mohr Davidow Ventures, Thomvest Ventures, SoftBank Capital, Reverence Capital Partners, the UPS Strategic Enterprise Fund, ING, Santander InnoVentures, Scotiabank and TCW/Craton.
All Kabbage U.S.-based loans are issued by Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC.