Kabbage

lendingonline loanssme financingcredit scoring

FOUNDING YEAR: 2009
LOCATION:
Last Update: 03/07/2020

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About

Kabbage provides SMBs with a line of credit by evaluating various alternative data parameters. It leverages data generated through business activity such as accounting data, online sales, shipping, and dozens of other sources to understand performance and deliver fast, flexible funding in real time. The company also provides white label platforms to companies wanting to start their own lending platforms. Recently, Kabbage was selected for the 2019 Forbes FinTech 50 startups list.

Focus

PRODUCTS & SERVICES

Online Loans for Small Businesses: Kabbage offers a variety of loans up to $250,000 with types scaling from SBA and small-business credit cards, to online and peer-to-peer, to equipment & inventory, to payroll & professional loans. It is a quick and simple online process that helps small business to get funding for the growth of their business.

REVENUE MODEL

Kabbage charges (1.5% - 12%/month) fee on issued loans and additional monthly fees. Every month, the borrower pays back one-sixth of the total loan (for six-month loans) or one-twelfth of the total loan (for 12-month loans) apart from a monthly fee. They do not charge any early-payment fees.

MAIN CLIENTS

Companies from the banking and electronic payments industry.

EXISTING PARTNERSHIPS

Kabbage has partnered with business data source firms such as Authorize.Net

UPS

Sage

Stripe

Shopify

Esty

Bigcommerce

Volusion

Xero

and Liquidation.com. Kabbage also partnered with Mastercard and now extends services to Mastercard’s network of acquirers. Kabbage has partnered with Experian

which would leverage Kabbage’s automated lending platform to its institutional clients serving small businesses and consumers. Kabbage also partnered with Intuit to underwrite small businesses. Celtic Bank will finance all the loans that originate in the US on Kabbage's platform

Scotiabank.

COMMENT

It uses real-time data in the loan approval process instead of relying on credit history. Kabbage has used social media analytics to quantify a borrower's propensity to repay. Kabbage also recognizes fingerprint authentication and ties into instant mobile check deposit to deliver capital in a few minutes.

Traction

VALUATION / MARKET CAP:

$1.2 B in 2017

REVENUE

$10M+ in 2018

REVENUE COMMENT:

The company reports say that its annual revenue was close to $300 million in 2018.

TRANSACTIONS COMMENT:

The company has provided over $6 billion loans to more than 150,000 small businesses to date. (Feb. 2019)

TRACTION COMMENT:

The company has secured over $500 million in fixed-rate, asset-backed notes. Kabbage will use to expand the amount, payback terms, and the size of loans it makes to SMBs over the next three years. (Feb. 2017)

Momentum

FUNDED

YES

TOTAL FUNDING

$488.65 M

DATE OF LAST FUNDING

Jul 2019

TOTAL FUNDING COMMENT

The company will use the funds to expand its small-business lending products and also expand into Asia. (Aug. 2017)

FUNDING SERIES

SERIES A  · $6.65 M  · Jan 2011

SERIES B  · $17 M  · Aug 2011

SERIES C  · $30 M  · Sep 2012

SERIES D  · $50 M  · May 2014

SERIES E  · $135 M  · Sep 2015

SERIES F  · $250 M  · Aug 2017

DEBT FUNDING

$1.96 B

LISTED

NO

Innovation Programs

BASICS

FOUNDING YEAR:

2009

LOCATION:

Views:

993 VISITORS | 2801 VIEWS
LATEST FUNDING ROUND

$489 M

TOTAL EMPLOYEES
501-1000

About

Kabbage provides SMBs with a line of credit by evaluating various alternative data parameters. It leverages data generated through business activity such as accounting data, online sales, shipping, and dozens of other sources to understand performance and deliver fast, flexible funding in real time. The company also provides white label platforms to companies wanting to start their own lending platforms. Recently, Kabbage was selected for the 2019 Forbes FinTech 50 startups list.

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