Kabbage Raises $250 Million
Fintech company Kabbage completed $250 million in financing from a subsidiary of SoftBank Group.
Kabbage is an automated technology and data platform that provides direct access to funding for small businesses and powers lending for large global banks. The company currently operates in North America and Europe, with plans to expand to Asia.
“SoftBank invests in market-leading companies that dramatically improve the customer experience and expand markets through breakthrough technology and data capabilities,” said SoftBank managing director David Thevenon. “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.”
According to the company, this investment represents the largest equity raise in the online small business lending segment to date and brings Kabbage’s total equity raised to nearly $500 million.
With the new investment, Kabbage will expand its lending products for small businesses and will explore moving into non-lending products and services. The company will also use the funds to accelerate its SaaS platform business, which 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 complete in the third quarter of 2017.