American Express Retires the Kabbage Brand with the Launch of Business Blueprint

American Express Retires the Kabbage Brand with the Launch of Business Blueprint
  • American Express is launching American Express Business Blueprint, a set of digital cash flow management tools for small businesses.
  • Small businesses can access the MyInsights cash flow solution within Business Blueprint at no charge.
  • Business Blueprint evolved out of Kabbage, an alternative lending startup that the company acquired in 2020. With the launch of Business Blueprint, the Kabbage brand is now retired.

Cash flow management tools are not new to fintech, but the industry gets excited when card giant American Express launches new tools. That’s the case today– the company unveiled American Express Business Blueprint, a set of digital cash flow management tools for small businesses.

Business Blueprint offers small business users digital financial products, payment card management tools, and cash flow insights via its MyInsights tool. The platform offers to lighten the load of small business owners by helping them manage cash flow, take out a loan, pay bills and vendors, check their account balances, deposit checks, accept card payments, and more. Additionally, the tool projects cash balances out to 30 days and sends spending alerts, as well as enables users to view and redeem their membership rewards points.

“Business Blueprint marks a critical next step in American Express’s vision of becoming a digital one-stop shop for small businesses’ financial needs, whether to manage their cash flow, make payments, get paid, or access working capital,” said company Group President of Global Commercial Services and Credit & Fraud Risk Anna Marrs.

American Express is onboarding small businesses onto Business Blueprint for free, and offering its MyInsights cash flow solution to them at no charge. That’s because the company is looking to sell businesses on its small business lending products, including:

  • American Express Business Line of Credit for a commercial line of credit ranging from $2,000 to $250,000 with interest rates ranging from 2% to 27%, depending on the term
  • American Express Business Checking for a digital business checking account that earns 1.30% APY on balances up to $500,000, and the ability to earn Membership Rewards points
  • American Express Payment Accept for accepting all major card payments from customers online

The new offering is rising out of the ashes of Kabbage, an alternative lending company launched in 2009 that American Express acquired in 2020. As Kabbage Co-Founder Rob Frohwein explained in a post on LinkedIn, “The end of era – for me and my Kabbage from American Express colleagues. Our company is fully integrated with Amex (and I’ve been gone for over a year).”

Frohwein went on to reminisce about how the day his team named the company “Kabbage.” One of the company’s early investors, Nicholas Steele, wanted to go with the name Cabbage. However, the “C” was changed to a “K” when the team discovered the cost of the Kabbage domain name was $73,800 cheaper. “Congrats to all Kabbagers – old and current. You may now refer to our business as Business Blueprint, but you’ll always bleed green and think twice when you enjoy actual cabbage in your salad or soup,” Frohwein added.

Photo by Alena Darmel

Women in Fintech: Learning to be Nimble in the Face of Uncertain Circumstances

Women in Fintech: Learning to be Nimble in the Face of Uncertain Circumstances

Our Women in Fintech Series continues with an interview featuring Kathryn Petralia, co-founder of Kabbage, an American Express Company.

We caught up with Kathryn Petralia to discuss her journey to success as the co-founder of Kabbage, an American Express Company, how alternative lending is democratizing access to financial services, and the importance of advocating for inclusion for every employee and end user.

Can you tell us how you got involved in fintech?

Kathryn Petralia: I was always interested in technology, its possibilities and impact, but I never considered it a career until much later. I was on track to earn a masters degree in English when a family friend asked me join a tech company he had invested in at the time. I ended up ditching the graduate program to take advantage of the opportunity.

From there I spent close to 15 years working in the credit, payments, and e-commerce industries, leading strategy and corporate development, as well as founding multiple companies. When my co-founder, Rob Frohwein, approached me about the idea of Kabbage, I immediately saw the potential to help small businesses gain access to capital via real-time data.

What drew you to the world of alternative lending? 

Petralia: I’ve been in alternative lending since the late ’90s, and my passion for helping small businesses has always been a driving force.

I was drawn to alternative lending as it’s a very interesting area of financial services that was ripe for disruption as new technologies paved a path to give customers a better experience.

At the time, I could see that automation and access to real-time data could do away with the lengthy, manual processes which were the status quo in the industry, and democratize access to financial services.

Where did you find support as you were starting out? 

Petralia: It’s important to have a strong partner and support system at home and in the office. I’ve been fortunate that my husband has been an at-home dad for our kids. And I’m an advocate of having a co-founder in business, someone that compliments one another’s strengths and weaknesses, and I’ve been lucky to have Rob a part of this journey.

Kabbage has grown into a hugely successful company. Can you share some of the challenges you have faced on your journey? 

Petralia: It was very challenging to raise money when we first launched Kabbage, especially in Atlanta where the venture community was small and there was not a lot of competition at the time. This unfortunately tends to drive down company valuations. It was hard to get Silicon Valley investors behind Atlanta businesses, but we ultimately succeeded and really raised the profile of Atlanta as a fintech and startup hub.

What advice do you have for small businesses coming through the pandemic?  

Petralia: While businesses were forced to adapt their processes to stay afloat during the pandemic, it’s crucial for them to continue evolving for long-term success. According to our Small Business Recovery Report, 77 percent of small businesses agreed they’re more open than ever before to replace old systems and adopt new technologies to run their company more efficiently.

Be nimble in the face of uncertain circumstances and adopt new technologies that will aid in the success of your business.

Where do you see fintech heading in the next 12 months?

Petralia: The pandemic highlighted where small businesses have cash flow gaps and operational blind spots, so fintechs should shift their focus and offer more comprehensive solutions that address these concerns. Offering a full suite of solutions and integrated platforms can provide business owners with the tools they need to solve their immediate needs while instilling more confidence in how they run their company with data.

What more do you think can be done to support women in fintech?

Petralia: There is so much more we can do to create equality in fintech. The gender disparity in fintech is due, in part, to the tendency of white-male-dominated industries to invest in other white-male-dominated businesses (which is of course true for technology companies generally). We can ensure this situation doesn’t endure by building inclusive products and encouraging leaders to make diverse hires. It’s crucial that we continue promoting policies and products that minimize biases and create a more inclusive industry.

What advice would you give to women starting their careers in the industry now?

Petralia: Women in Fintech must advocate for inclusion not just for leadership, but also for every employee and end user. But as for those women—or men, frankly— just joining the industry or pursuing their goals, I always advise to really take the time to be the smartest about your field, job, or industry. That will earn you seats at tables and trust among executive teams that will help propel you and your career.

Photo by Tim Gouw from Pexels

It’s Official: American Express to Acquire Kabbage

It’s Official: American Express to Acquire Kabbage

The big card companies continue to make the kind of deals that underscore the importance of fintech to the future of financial services. This week we get confirmation that international payments giant American Express has agreed to acquire SME lender Kabbage.

Terms of the deal were not disclosed. Speculation on the deal in recent days has put the purchase price between $850 million and $1 billion.

The acquisition will include Kabbage’s team, its suite of financial technology solutions, as well as the company’s data platform and IP built for small businesses. American Express also plans to leverage Kabbage’s technology and talent to offer additional cash flow management and working capital solutions to its small business customers. In the acquisition announcement, American Express highlighted Kabbage’s recently introduced business checking account, which centralizes funds for easier cash flow management.

“This acquisition accelerates our plans to offer U.S. small businesses an easy and efficient way to manage their payments and cash flow digitally in one place, which is more critical than ever in today’s environment,” President of Global Commercial Services at American Express Anna Marrs said.

A Finovate alum for more than a decade, Kabbage has raised $2.5 billion in funding, with the company’s last equity round closing in 2017 after raising $250 million. This year, in addition to the launch of its business checking account, Kabbage distinguished itself as a major conduit for small businesses seeking COVID-19 related relief funding. The company said it has facilitated 300,000 Paycheck Protection Program (PPP) loans valued at more than $7 billion. Kabbage’s participation in the program was a dramatic return to its role as a resource for small business financing after the company suspended SME lending in April in response to the global health crisis.

“At Kabbage, we have always made the success of America’s small businesses our primary objective,” Kabbage CEO and co-founder Rob Frohwein said in a statement. “We have built a technology and a data platform that provides them with the kind of capabilities and insights often reserved for larger businesses. By joining American Express, we can help more small businesses succeed with a fully digital suite of financial products to help them run and grow their companies.”

As part of the agreement, both Kabbage’s securitized SME loans and its PPP laons will be serviced by an separate entity to be established by Kabbage and American Express, the Financial Times reported.

American Express’ purchase of Kabbage comes less than a month after another big acquisition in the online SME lending space: Enova International’s $90 million deal for OnDeck. For both companies, the acquisitions provide the opportunity to expand meaningfully beyond their core competencies: Enova adding to its consumer lending operations, and AMEX bringing working capital and SME financing to its commercial card business.

The acquisition is expected to close later in 2020.

Photo by Paul IJsendoorn from Pexels

Checking Please: Kabbage Launches Small Business Accounts

Checking Please: Kabbage Launches Small Business Accounts

Small business cash flow solution provider Kabbage unveiled its Kabbage Checking offering today. The new business checking account is designed to give smaller businesses the “capabilities, convenience, and security” of traditional business accounts, while sparing them “monthly fees or friction.”

The accounts charge no opening or maintenance fees, and do not require minimum or daily balances. At present, Kabbage Checking offers 1.10% APY, which is paid out monthly. The company states this is among the highest interest rates available for a business checking account.

Kabbage Checking accounts come with a Kabbage Debit Mastercard, support electronic billpay, and provide access to free ATM access via a 19,000-ATM national network. Account holders also can create up to five e-wallets to help manage spending and savings. The new accounts can be used with other Kabbage solutions such as Kabbage Insights for daily cash flow analyses and forecasts, Kabbage Payments to accelerate settlements and avoid cash flow shortfalls, and Kabbage Funding, which helps account holders avoid accidental overdrafts. Additional features, including wire transfers and mobile remote deposit, are expected to be added later in the year. The accounts are issued by Green Dot Bank, and are insured up to $250,000.

“We believe in the businesses too often left out, overlooked and underestimated,” Kabbage President Kathryn Petralia said. “Kabbage Checking is a new banking service built to give those small businesses an upper hand to earn more, save more, and grow their business faster without sacrificing anything they expect from a bank.”

Kabbage has been one of the more active fintechs in terms of helping small businesses during the current COVID-19 pandemic. The company approved +209,000 small businesses for $5.8 billion as part of the Paycheck Protection Program, making Kabbage the third largest PPP lender in the U.S. by application volume. This feat, according to Kabbage CEO Rob Frohwein, was a large step for the company, and perhaps an even greater one for fintech writ large.

“The PPP validated the criticality of FinTech,” he said in a statement earlier this month. “Most of the small businesses we reached would have been ignored had this crisis taken place just 10 years ago. These businesses can only be served in mass by an automated platform that places need in front of privilege and levels the playing field that has too long been unequal in our financial system.” He added that fintechs increasingly will be the solution provider of choice, as more small businesses migrate toward these newer companies instead traditional banks “when seeking even the most basic financial services.”

Photo by Michael Morse from Pexels

Finovate Alums Earn Spots in CNBC’s 2020 Disruptor 50

Finovate Alums Earn Spots in CNBC’s 2020 Disruptor 50

Six companies that have demonstrated their fintech innovations on the Finovate stage have been recognized this year by CNBC as part of their Disruptor 50 roster for 2020.

This year’s list, the eighth in the series, is marked by the high number of billion-dollar companies, or “unicorns.” Fully 36 of the firms in the 2020 CNBC Disruptor 50 have reached or surpassed the $1 billion valuation mark. Combined, the 50 companies have raised more than $74 billion in VC funding and achieved an implied market valuation of almost $277 billion.

The companies making the cut range in industry from cybersecurity and healthcare IT to education and, of course, fintech. In fact, the top-ranked company in the 2020 Disruptor 50 is none other than Stripe, the $36 billion payments platform founded in 2010. Stripe earned a #13 ranking in last year’s Disruptor 50 roster, and likely owes its first place appearance this year to a major $600 million funding raising – the company’s largest to date – and the economic and social consequences of the global health crisis.

“With many people throughout the world under lockdown to prevent the spread of Covid-19,” CNBC’s capsule on the company noted, “the move to shopping online has never been greater. That’s good news for digital payments platform Stripe.”

Stripe was not the only fintech to earn high marks from the 2020 Disruptor 50’s methodology. In addition to the half dozen Finovate alums below, some of the other fintechs on this year’s roster include:

  • Virtual bank WeLab (Hong Kong)
  • Digital mortgage company (New York City)
  • “Buy now pay later” e-commerce company Affirm (San Francisco, California)
  • Challenger bank Chime (San Francisco, California)
  • Banking app Dave (Los Angeles, California)
  • Microfinancier TALA (Santa Monica, California)
  • Trading and investing platform Robinhood (Menlo Park, California)

Also earning spots in this year’s list were a pair of insurtech companies, Lemonade and Root Insurance, as well as cybersecurity and biometric authentication firms SentinelOne and CLEAR, respectively.

Here’s a look at the Finovate alums that made this year’s list.

#5 Klarna

  • Founded: 2005
  • Headquarters: Stockholm, Sweden
  • CEO: Sebastian Siemiakowski
  • Valuation: $5.5 billion
  • Previous ranking: #8 in 2016

#8 SoFi

  • Founded: 2011
  • Headquarters: San Francisco, California
  • CEO: Antony Noto
  • Valuation: $4.8 billion
  • Previous ranking: #26 in 2019

#24 Kabbage

  • Founded: 2009
  • Headquarters: Atlanta, Georgia
  • CEO: Rob Frohwein
  • Valuation: $1.1 billion
  • Previous ranking: #14 in 2019

#27 Trulioo

  • Founded: 2011
  • Headquarters: Vancouver, British Columbia, Canada
  • CEO: Steve Munford
  • Valuation: N.A.
  • Previous ranking: #37 in 2017

#28 Ripple

  • Founded: 2012
  • Headquarters: San Francisco, California
  • CEO: Brad Garlinghouse
  • Valuation: $10 billion
  • Previous ranking: First appearance

#33 Marqeta

  • Founded: 2010
  • Headquarters: Oakland, California
  • CEO: Jason Gardner
  • Valuation: $4.3 billion
  • Previous ranking: First appearance

Photo by Malte Luk from Pexels

Kabbage Collaborates with Facebook to Back Retailers During the COVID Crisis

Kabbage Collaborates with Facebook to Back Retailers During the COVID Crisis

One of the most immediate impacts of the worldwide effort to combat the COVID-19 virus is social distancing. And however effective social distancing is in limiting the ability of the coronavirus to spread, it is equally effective in crushing the revenues of businesses large and small.

To help small businesses in the retail sector cope with this challenge, small business cash flow solution provider Kabbage has partnered with Facebook. Together, the two companies will help merchants continue to generate revenue at a time when their customers – for sound reasons based on public health – are largely staying away.

Via the partnership, small businesses can sign up on a new website sponsored by Kabbage: This will enable them to sell online gift certificates through Kabbage’s KabbagePayments portal and automatically list them on Facebook. These offers will be visible to Facebook users through their Facebook mobile app; Facebook users can then purchase gift certificates from the website.

The integration makes it easy for small businesses to sell online gift certificates and place them where they are most likely to be seen by consumers increasingly resorting to online shopping in lieu of traveling to brick and mortar stores. It’s also a way for consumers to support their favorite retailers.

“Now with the powerful reach of Facebook, small business owners have greater opportunity to share gift certificate offers to the community that rely upon them,” Kabbage CEO Rob Frohwein said. “Small businesses are the most impacted in this crisis and this is one way Kabbage is applying its technology and resources to save them.”

The initiative with Facebook is only a small part of Kabbage’s participation in the effort to help SMEs survive the economic consequences of the coronavirus pandemic. The company is one of many helping facilitate relief funding to SMEs via the Small Business Administration’s Paycheck Protection Program (PPP). The PPP provides funding up to 2.5x average monthly payroll, and the SBA forgives the portion of the loan that is used for critical business operations such as payroll, rent, mortgage interest, or utilities if all employees are kept on staff. Kabbage reports that it has received more than 37,000 applications for the PPP, totaling more than $3.5 million.

“The smallest businesses in America are always the hardest hit, the most vulnerable, and the most in need when a crisis strikes, and together with our bank partner, we are working tirelessly to support them,” Frohwein said.

Founded in 2009 and headquartered in Atlanta, Georgia, Kabbage has been a Finovate alum since 2010 when the company debuted its Kabbage Loan at FinovateSpring.

Finovate Alums Earn Spots on Deloitte’s 2019 Technology Fast 500

Finovate Alums Earn Spots on Deloitte’s 2019 Technology Fast 500

Of the 500 fastest growing technology companies in North America right now, how many have demonstrated their technology live on the Finovate stage?

The answer, courtesy of Deloitte’s just-released 2019 Technology Fast 500 ranking, is a full, baker’s dozen of thirteen innovative firms that have introduced their solutions to Finovate audiences. Update: 11/13: Make that 14 companies!

“This year marks the 25th anniversary of Deloitte’s Technology Fast 500, so we are especially pleased to announce and congratulate the 2019 winners,” Deloitte Vice Chairman Sandra Shirai said. “Once again, we saw innovation across the board, with software companies continuing their dominance of the top ten. It’s always inspiring to see how the Fast 500 companies are transforming business and the world we live and work in.”

Making the top 20 of Finovate alums making the cut was Unison, which made its Finovate debut at FinovateSpring in 2017, winning Best of Show. Unison’s HomeBuyer and HomeOwner solutions help make homes more affordable and home equity easier and less expensive to access.

Also notable on Deloitte’s list is the appearance of two of our newest alums – SheerID and EVERFI – which demonstrated their solutions earlier this year at FinovateSpring.

Check out all the Finovate alums that made the list below. We’ve included their Technology Fast 500 rank, three-year revenue growth rate, headquarters location, and a link to the company’s most recent Finovate demo video.

Rank #19
Growth 5,280%
San Francisco, California
FinovateFall 2017

Rank #115
Growth: 1,084%
San Jose, California
FinovateSpring 2013

Rank #122
Growth: 1,036%
San Francisco, California
FinovateFall 2016

Rank #129
Growth: 974%
New York City, New York
FinovateFall 2014

Rank #130
Growth: 958%
Plano, Texas
FinovateSpring 2009 (as iThryv)

Rank #185
Growth: 596%
New York City, New York
FinovateFall 2012

Rank #214
Growth: 510%
Charlotte, North Carolina
FinovateEurope 2016

Rank #231
Growth: 472%
San Mateo, California
FinovateEurope 2014

Rank #243
Growth: 450%
Portland, Oregon
FinovateSpring 2019

Rank #297
Growth: 359%
Richmond, Virginia
FinovateSpring 2016

Rank #348
Growth: 282%
New York City, New York
FinovateEurope 2013

Rank #378
Growth: 250%
Lehi, Utah
FinovateSpring 2011

Rank #448
Growth: 198%
Atlanta, Georgia
FinovateSpring 2015

Rank #469
Growth: 184%
Washington, D.C.
FinovateSpring 2019

GoDaddy Adds SME Financing Option with Kabbage Partnership

GoDaddy Adds SME Financing Option with Kabbage Partnership

The “everyday entrepreneurs” of GoDaddy just got access to a new financing option. The web hosting innovator has teamed up with online lending and technology platform Kabbage to enable its business customers to apply for and receive a Kabbage line of credit of up to $250,000 in a matter of minutes if approved.

“Our customers tell us all the time that flexible funding is critical to grow and run their businesses; new opportunities make it important to be able to access capital, quickly whether for online marketing, inventory or purchasing new equipment,” Kabbage CRO Laura Goldberg explained. “They simply can’t afford to wait weeks or months for a loan approval.”

The flexible lines of credit also mean that business borrowers are not obligated to make withdrawals. There is no fee for applying for Kabbage funding, and borrowers pay nothing until they access the funds. “Our customer base of over 200,000 small businesses across the U.S. understands the value of accessing the exact amount of funding they need when they need it,” Goldberg said.

In a statement, Kabbage and GoDaddy highlighted the role that a lack of capital played in undermining small business digital marketing efforts, in particular. Citing a survey of 500+ entrepreneurs, the companies noted that small businesses typically pointed to a lack of money as the main reason for not growing their presence online.

“We know that a lack of capital for marketing and other core activities remains a major roadblock to accelerate growth,” GoDaddy VP of global market operations Melissa Schneider said. “Our partnership with Kabbage is key in our ongoing mission to empower our customers and provide them with the resources they need to fuel their business needs.”

GoDaddy has more than 18 million customers and 9,000+ employees around the world. Headquartered in Scottsdale, Arizona, the company had 2017 revenues of $2.2 billion and a net income that same year of more than $15 million. Founded in 1997, GoDaddy is publicly-traded on the New York Stock Exchange under the ticker GDDY. The company has a market capitalization of $11 billion.

Founded in 2009, Kabbage demonstrated its Kabbage Card – which links directly to the customer’s Kabbage line of credit – at FinovateSpring 2015. More recently, the company announced that it was getting into the payments business with the launch of a new SME payments solution, Kabbage Payments. Also this fall, the Atlanta, Georgia-based company acquired fellow Finovate alum Radius, adding insights into millions of small businesses to its platform.

Kabbage is also an alum of our developers conference, FinDEVr SiliconValley 2015. At the event, the company’s Chief Technical Officer demonstrated how developers can use the Kabbage platform to accelerate the lending process.

Finovate Alumni News


  • GoDaddy Adds SME Financing Option with Kabbage Partnership.
  • Ephesoft Drives Digital Automation in Thailand via Language Recognition.

Around the web

  • Forbes features OurCrowd’s approach to startup investing.
  • Flywire appoints former Apple Pay executive Rob Orgel as President and Chief Operating Officer.
  • Kabbage forms distribution partnership with GoDaddy.
  • Creditinfo recognizes five°degrees as one of Iceland’s Strongest Companies for the 9th consecutive year.
  • The Milford Bank goes live with Plinqit’s savings app.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Kabbage Joins the Small Business Payments Processing Party

Kabbage Joins the Small Business Payments Processing Party

With the launch of Kabbage Payments, SME cash flow management solution provider Kabbage is ready to help small businesses get paid, as well as get funded.

“Since 2011, we’ve helped hundreds of thousands of small businesses access over $8 billion in funding,” Kabbage CEO Rob Frohwein said. “We know first-hand a primary need is to cover cash-flow gaps while waiting to be paid.”

Currently available to Kabbage customers and scheduled for public availability “soon,” the new payment solution from Kabbage will feature no-fee, unlimited, online invoicing; next-day deposits; low costs for card payments (cash and check payments free); and a dashboard that provides a view of all payments activity in a single location.

One standout feature of the new solution is a custom pay link that is especially geared toward SMEs that rely on invoice payments. Customers using Kabbage Payments will be able to create a unique URL for their business that enables them to send payment requests by text, email, or the web to collect card payments. With this secure, fast, and flexible option, there is no need to create new accounts manually or open new payment orders, and avoids having to do duplicate work for recurring invoices.

“Kabbage Payments not only expands our suite of products, but the very definition of our company. We deeply believe in the mission of small businesses and understand what they need to succeed – namely, more time building their businesses and less time worrying about cash flow,” Frohwein said.

Businesses interested in the solution can reach out to Kabbage Payments and request early access.

Kabbage demonstrated its Kabbage Card offering at FinovateSpring 2015. Part of the company’s “Kabbage Everywhere” product expansion, the Kabbage Card makes it more convenient for small business owners to use their Kabbage line of credit while on the go. More recently, the company has launched an interactive index analyzing U.S. SME revenue trends, acquired small business insights firm Radius Intelligence, and closed a new, four-year, $200 million revolving credit facility. This transaction followed Kabbage’s massive $700 million securitization – the largest ever by a small business online lending platform – announced this spring.

Earlier this month, Kabbage announced that its customers had accessed more than $715 million in funding via its platform in Q3, and that 42,000+ unique customers were added year-to-date, which tops 2018’s 37,000 total customer gain. At the same time, the company noted that the core of its funding activity comes from repeat customers, who represent more than 75% of all funding activity on the platform and more than $6 billion of the $8+ billion accessed to date.

“It’s essential to have a business model that’s built on scalable long-term growth, and repeat business is a critical metric,” Frohwein said. He praised the platform’s ability to “re-underwrite customers daily,” providing SMEs with a 24/7 source of funding. “Thanks to the speed at which our technology allows us to serve them, we’ve seen record highs,” Frohwein said, “serving nearly 1,900 small businesses who have accessed over $13 million in a single day.”

Founded in 2009, Kabbage is headquartered in Atlanta, Georgia.

Finovate Alumni News


  • Fiserv Unveils its Intelligent Billpay Service, CheckFree Next.
  • Kabbage Joins the Small Business Payments Processing Party.
  • Raising Roostify: Santander InnoVentures Leads Expansion Round.

Around the web

  • Backbase teams up with Payveris to bring integrated digital payments and money movement solutions to FIs.
  • TransUnion appoints communications and IT services veteran Mike Davies as UK Chief Operating Officer.
  • Danish challenger bank Lunar chooses financial crime mitigation technology from Temenos.
  • Finn AI announces expansion of its partnership with Visa beyond Canada.
  • Revolut opens up new offices in Singapore.
  • myGini successfully completes PCI Level 1 compliance audit.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Kabbage Acquires Radius, Adding Insights into Millions of SMEs to its Platform

Kabbage Acquires Radius, Adding Insights into Millions of SMEs to its Platform

Small business financing company Kabbage has made a purchase that will help it get to know the world of SMEs all the better. In a deal announced today, Kabbage will acquire small business intelligence firm, and fellow Finovate alum, Radius, adding insights from more than 20 million U.S. small businesses to its platform.

Terms of the deal were not disclosed. Upon the successful closing of the acquisition, Kabbage said in a statement that it will add “nearly 20 team members” from Radius to its offices in San Francisco, including Radius CEO Joel Carusone, to help support the integration of the two platforms and the two companies.

“Data has always been our competitive advantage, and Radius strengthens it by adding millions of new and verified small business insights to our platform,” Kabbage CEO Rob Frohwein said. “These new technology and data-analysis capabilities further differentiate us from other SMB-focused fintech companies as we dramatically expand our product set and service platform to address the unique cash flow needs of small businesses.”

Expressing a “deep respect for Kabbage’s data-driven technology and focus,” Radius’ Carusone highlighted similarities between the two firms. “Our companies have complementary technical architectures and domain experience for decision making,” he said. “With Kabbage, we can build a more sophisticated analytics solution to identify, reach, and serve small businesses.”

San Francisco, California-based Radius was founded in 2009. The company demonstrated its platform at FinovateSpring 2014, showing how it leverages big data to gain insights into more than 27 million small and medium-sized businesses. This information helps FIs find the best customer segments, build efficient and accurate targeted lead lists, and measure the success of marketing campaigns.

Radius began 2019 with the launch of its Data for Good campaign to help the company’s employees and customers give back to their communities. This included credit-backs to the accounts of for-profit companies for any data used to support philanthropic causes. The campaign also featured service donations to nonprofits to enable them to use the Radius’ enterprise customer data platform to reach out to and potentially partner with small businesses.

In May, Radius unveiled a new data stewardship app designed to fix bad, siloed Salesforce data. The new solution enables enterprises to manage data across any Salesforce field based on unified, trusted data. “Existing tools enrich some external data,” Radius CEO Joel Carusone explained, “but what’s missing is an easy-to-use application coupled with a powerful platform that gives users access to data unified across all third-parties and their internal data sets.”

Atlanta, Georgia-based Kabbage made its first appearance on the Finovate stage in 2010, demoing its Kabbage Loan offering at FinovateSpring that year. The company most recently demoed its Kabbage Card, a part of the company’s Kabbage Everywhere product expansion, at FinovateSpring 2015.

Featured in June by CEO World in its look at fintechs that are helping fight for fair lending, Kabbage announced a partnership with online banking platform Azlo in May that would create a new entity, Mission Street Capital, to help small businesses get the financing they need to grow. Kabbage also announced in May that it was teaming up with the BTEA (Building Trades Employers’ Association) in a strategic alliance to help women and minority-owned business enterprise contractors to secure funding for their projects.

With $2.5 billion in funding, Kabbage includes SoftBank Capital, Mohr Davidow Ventures, and BlueRun Ventures among its investors. The company was founded in 2009.