Kabbage, Inc., an Atlanta, Georgia-based provider of working capital advances for online merchants, has secured $6.65m in Series A funding.
The round was led by BlueRun Ventures, with participation from David Bonderman, founder of TPG Capital, Warren Stephens, CEO of Stephens Inc. and the UPS Strategic Enterprise Fund.
As stated by CEO Robert Frohwein, the company intends to use the new funds to expand operations into additional marketplaces, such as Amazon, Etsy, Overstock, etc.
Kabbage is developing a financial services data, technology and marketing platform that enable online small and medium sized businesses to receive cash in their PayPal account in a few minutes.
It provides a real time analysis of online merchants’ sales and credit history and determinate of whether it is possible to offer them an advance (click here to see how it works).
The platform currently works with eBay merchants, who use advances to grow their businesses by acquiring inventory, hiring employees, advertising and purchasing equipment and technology.