A new partnership between cash flow technology and SME lending innovator Kabbage and online banking platform Azlo will make it easier for small businesses to secure growth financing. The two companies have launched a new program, Mission Street Capital, which will provide loans of up to $250,000 for SMEs.
“Azlo is helping fill a crucial gap in our financial system to serve underbanked small businesses,” Kabbage Chief Revenue Officer Laura Goldberg said. “Kabbage’s real-time lending platform allows Mission Street Capital to effectively serve any small business in any location to access the funding they need to grow.”
Firms with an Azlo small business banking account will be eligible to participate in the program, and can apply via Mission Street Capital to access Kabbage loans. Azlo will use Kabbage’s technology to analyze banking and other business performance data in real-time in order to generate a fully automated financing decisions for the customer. The digital-only bank with no physical branches believes Mission Street Capital will make it easier to reach its business customers who may struggle to secure financing because they have relatively thin-file credit histories or because they are a part of the gig economy.
“Azlo is proud to be serving today’s small businesses,” Azlo Chief Operating Officer Bryan Crumpler said. “Our mission is enabling small businesses to succeed in their mission and partnering with Kabbage is a huge step forward in being able to accomplish that.”
More than 175,000 small businesses have accessed more than $6.5 billion through Kabbage’s platform. In its most recent Finovate appearance at FinovateSpring in 2015, the company demonstrated its Kabbage Card solution. The card, part of its Kabbage Everywhere initiative, gives small businesses the ability to use their Kabbage credit to pay for inventory or supplies wherever they may be. Also that year, the Kabbage participated in our developers conference, FinDEVr Silicon Valley, showing how developers can leverage its technology to build their own automated lending platform.
Founded in 2009 and headquartered in Atlanta, Georgia, Kabbage has raised more than $2.3 billion in funding, including a debt financing round this April that added $700 million to the company’s coffers. Also this spring, the firm was highlighted in Inc.com’s feature: 5 Companies That Prove You Must Evolve to Thrive.
Alternative financing startup Kabbageclosed a $700 million asset backed securitization this week. The amount of funding is record-breaking, marking the largest asset-backed securitization by a small business online lending platform to date.
The new transaction, which saw contributions from new and existing investors, brings Kabbage’s total combined debt and equity funding to $2.3 billion and raises its total debt funding to $940 million. The company plans to use the funds to pay down one of its existing asset-backed securitization transactions.
The company’s CFO Scott Rosenberg said, “The new transaction positions the company for continued milestone growth as small businesses accessed more than $2 billion through Kabbage last year and more than $600 million already in the first quarter of 2019.”
Kabbage was founded in 2009 and has since extended more than $6.5 billion in loans to 170,000+ small businesses in the U.S. The company underwrites the loans using non-traditional data, such as shipping records, to originate loans and monitor the business’ improvement to extend more credit, if needed.
In 2018, Kabbage acquired lending platform Orchard to enhance its data analytics capabilities. At FinovateFall 2018, I spoke with Orchard Cofounder David Snitkof, who now serves as Kabbage’s head of data integration and insights, about the integration of the two companies.
Kabbage most recently demoed at FinovateSpring 2015 where it launched the Kabbage Card. The Kabbage Card allows users to withdraw from their line of credit at any point-of-sale where VISA is accepted. Earlier this year, Kabbage announced plans to offer its Pay Later financing program to Alibaba.com’s buyers.
“Recognition as a leading innovator in fintech is tremendous validation for the hard work we’ve done at Marqeta to open the industry up to the possibilities and opportunities of modern card issuing,” company CEO and founder Jason Gardner said. Marqeta is among the 20 companies to make its first appearance on the Forbes Fintech 50 roster.
Also earning their first appearances on Forbes Fintech 50 roster are New York based mobile investment platform Stash and San Francisco supply chain payments innovator Tradeshift.
“Very excited to be included in the 2019 Forbes Fintech 50!,” Stash tweeted once the news was released at the start of the week, “Monday = made.”
“We made the list!” Tradeshift tweeted this morning.
Summarizing this year’s selection of top fintechs, the editors noted that while 19 out of the 50 fintechs featured are unicorns with valuations of more than $1 billion, a nearly equal amount – 20 startups – are making their first showing on Forbes top fintech list. The two areas where newcomers were more prevalent, according to the editors, were payments technology and startups serving the un- and underbanked.