Total amount raised
$2.5 Billion
Latest funding date
7/1/2019
Location
Kabbage has successfully raised funds over 16 rounds, with the latest being a Debt Financing round. The company has been acquired by American Express and continues to offer cash flow management solutions to small businesses.
With backing from 26 investors, including Kabbage Asset Securitization and SoftBank, Kabbage's financial journey is noteworthy. Keep reading to explore the intricacies of Kabbage's fundraising journey and the investors backing this innovative platform.
What Is Kabbage?
Kabbage, a fintech company based in Atlanta, Georgia, offers cash flow management solutions to small businesses. The company operates in various industries, including consumer lending, financial services, fintech, lending, and micro-lending.
Founded by a team of innovators, Kabbage has grown to employ between 251 and 500 people. The company was acquired by American Express and continues to support small businesses through its advanced financial services.
How Much Funding Has Kabbage Raised?
- Debt Financing
- Amount Raised: USD 75,000,000
- Date: April 2013
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's growth and expansion in offering cash flow management solutions to small businesses.
- Debt Financing
- Amount Raised: USD 270,000,000
- Date: April 2014
- Lead Investors: Guggenheim Securities
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To bolster the company's ability to provide loans and support its rapid growth.
- Series D
- Amount Raised: USD 50,000,000
- Date: May 2014
- Lead Investors: SoftBank Group
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the business and enhance the AI-based platform.
- Series E
- Amount Raised: USD 135,000,000
- Date: September 2015
- Lead Investors: Reverence Capital Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand market reach and support the company's growth.
- Debt Financing
- Amount Raised: USD 500,000,000
- Date: March 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To meet the escalating demand for capital access among small businesses.
- Series F
- Amount Raised: USD 250,000,000
- Date: August 2017
- Lead Investors: SoftBank Vision Fund
- Valuation at Round: USD 1,200,000,000
- Motivation Behind the Round: To scale the business and enhance the AI-based platform.
- Debt Financing
- Amount Raised: USD 200,000,000
- Date: November 2017
- Lead Investors: Credit Suisse
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's growth and expansion in offering cash flow management solutions to small businesses.
- Debt Financing
- Amount Raised: USD 700,000,000
- Date: April 2019
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To bolster the company's ability to provide loans and support its rapid growth.
- Debt Financing
- Amount Raised: USD 200,000,000
- Date: July 2019
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To add more firepower to Kabbage's lending machine and meet the escalating demand for capital access among small businesses.
Total Amount Raised: USD 2,380,000,000. Current Valuation: USD 1,200,000,000.
Key Investors
- SoftBank Vision Fund
- Details: SoftBank Vision Fund is one of the largest technology-focused investment funds in the world, managed by SoftBank Group. It aims to invest in market-leading, tech-enabled growth companies.
- Investment Focus Areas: Technology, telecommunications, internet services, AI, robotics.
- Notable Investments: Alibaba, Uber, WeWork.
- BlueRun Ventures
- Details: BlueRun Ventures is a venture capital firm that focuses on early-stage technology companies. It has a history of investing in companies that have gone on to become market leaders.
- Investment Focus Areas: Mobile, fintech, enterprise software.
- Notable Investments: PayPal, Waze, Coupa.
- Mohr Davidow Ventures
- Details: Mohr Davidow Ventures is a venture capital firm that invests in early-stage companies. It focuses on transformative technology and life sciences companies.
- Investment Focus Areas: Technology, life sciences, sustainability.
- Notable Investments: Coupa, HealthTap, Kabbage.
- Reverence Capital Partners
- Details: Reverence Capital Partners is a private investment firm focused on investing in financial services companies. It was founded by former Goldman Sachs executives.
- Investment Focus Areas: Financial services, fintech, asset management.
- Notable Investments: Russell Investments, Victory Capital, Diamond Resorts.
- Guggenheim Securities
- Details: Guggenheim Securities is the investment banking and capital markets business of Guggenheim Partners. It provides advisory, financing, sales, and trading services.
- Investment Focus Areas: Financial services, technology, healthcare.
- Notable Investments: Kabbage, SolarCity, Uber.
What's Next for Kabbage?
As Kabbage looks to the future, the company is poised to capitalize on the growing demand for small business loans. With its AI-based lending platform, Kabbage can quickly and accurately provide financial solutions, making it a valuable partner for small businesses. The company has already loaned out $7 billion to 185,000 businesses and is on track to loan out between $2.4 billion and $3 billion this year. This substantial financial backing, including a recent $200 million revolving credit facility, positions Kabbage well for continued growth.
Future fundraising opportunities may arise as Kabbage seeks to meet the escalating demand for capital access among small businesses. While there are no immediate plans for equity fundraising, the company may continue to secure large credit facilities and securitizations. However, Kabbage will need to navigate challenges such as competition from traditional banks and other fintech companies, as well as regulatory hurdles in the financial services industry. Maintaining the accuracy and reliability of its AI algorithms will also be crucial for sustaining its competitive edge.
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