Kabbage
lending . online loans . sme financing . credit scoring
FOUNDING YEAR: 2009
LOCATION: United States
Last Update: 23/02/2021
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About
Empowering #SmallBusiness owners to generate critical #CashFlow through @HelpSMBs. #HelpSMBs
MEDICI Analysis
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
COMPANY TYPE:
For Profit
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)
People
FOUNDERS
Kathryn Petralia
Rob Frohwein
Marc Gorlin
BOARD MEMBERS AND ADVISORS
Scott Thompson
Peter Kight
Oneal Bhambani
Jonathan Ebinger
Don Butler
Steven Murray
and Bryan Stolle.
NUMBER OF EMPLOYEES
501-1000
INVESTORS:
and Elevate Innovation Partners.
KEY EMPLOYEES:
Rob Frohwein (CEO); James Chou (CTO); Robert Sharpe (COO)
Momentum
FUNDED
YES
NUMBER OF FUNDING ROUNDS
7
TOTAL FUNDING
$488.65 M
DATE OF LAST FUNDING
Jul 2019
IPO STATUS
Private
TOTAL FUNDING COMMENT
The company will use the funds to expand its small-business lending products and also expand into Asia. (Aug. 2017)
ESTIMETED REVENUE RANGE
$50M to $100M
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
$200 M
LISTED
NO
company provided insights
M&A
ACQUIRED BY
American Express
ANNOUNCED DATE
Aug 2020
PRICE
---
company provided insights
Acquisitions
ACQUIREE NAME
Orchard Platform
ANNOUNCED DATE
Apr 2018
PRICE
---
company provided insights
Web Traffic
MONTHLY VISITS
1,778,353
AVERAGE VISITS (6 MONTHS)
880,757.33
MONTHLY VISITS GROWTH
-12.57%
VISIT DURATION
601
VISIT DURATION GROWTH
-4.79%
PAGE VIEWS VISIT
13.69
PAGE VIEWS VISIT GROWTH
-8.92%
BOUNCE RATE
23.08%
BOUNCE RATE GROWTH
-3.49%
GLOBAL TRAFFIC RANK
15,962
MONTHLY RANK CHANGE
1,333
MONTHLY RANK GROWTH
9.11%
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