Kabbage

Kabbage

Lending | Online Loans | SME Financing | Credit Scoring
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  • FOUNDING YEAR: 2009
    LOCATION:
    United States
    REGION:
    Georgia
    Last Update:
    9 Sep, 2019
    Phone:
    +1 678-580-2689
    Global presence:
    United States, Ireland, India, Ireland, India

Description

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:
Viewable by subscribers only
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.

PEOPLE

FOUNDERS:
Kathryn Petralia, Rob Frohwein, Marc Gorlin
Board Members and Advisors:
Peter Kight, Oneal Bhambani, Scott Thompson, Jonathan Ebinger, Don Butler, Steven Murray, , Bryan Stolle.
NUMBER OF EMPLOYEES:
201-500
INVESTORS:
SoftBank Group, Credit Suisse, Reverence Capital Partners, ING, Scotiabank, Recruit Strategic Partners, BlueRun Ventures, United Parcel Service, Thomvest Ventures, Santander InnoVentures, Mohr Davidow Ventures, Lumia Capital, TCW Group, Guggenheim Partners, Victory Park Capital, SV Angel, Western Technology Investment, Hard Yaka, Princeville Global, Northgate Capital, Canvas Ventures, Mavcap, Wildcat Venture Partners, and Elevate Innovation Partners.
KEY EMPLOYEES:
Rob Frohwein (CEO); James Chou (CTO); Robert Sharpe (COO)

TRACTION

VALUATION / MARKET CAP:
$1.2 Billions in 2017
REVENUE:
$10M+ in 2018
REVENUE COMMENT:
Viewable by subscribers only
TRANSACTIONS COMMENT:
The company has provided over $6 billion loans to more than 150,000 small businesses to date. (Feb. 2019)
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 Millions
DATE OF LAST FUNDING:
Aug 2017
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 Millions Closed: Jan 2011
SERIES B
$17 Million Closed: Aug 2011
SERIES C
$30 Millions Closed: Sep 2012
SERIES D
$50 Millions Closed: May 2014
SERIES E
$135 Million Closed: Oct 2015
SERIES F
$250 Millions Closed: Aug 2017
DEBT FUNDING:
$1.06 Billions
LISTED:
NO

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