US-based e-commerce lending firm Kabbage lands $50M in Series D financing
Kabbage Inc, a lending platform for online small businesses, has closed its Series D funding round at $50 million. SoftBank Capital was the lead investor with TCW/Craton, Lumia Capital, David Bonderman, Stephens Inc, Warren Stephens, and United Parcel Inc participating, according to The Wall Street Journal (WSJ).
The latest funding brings Kabbage's total raised capital to $106 million, on top of a $207-million loan facility that it had secured earlier from Guggenheim Partners. The valuation for this round was not revealed, the report detailed.
Kabbage provides small e-commerce firms with credit lines to tap into whenever they need cash. This kind of credit is called merchant cash advances. The lending firm uses data from social media and online metrics to determine their fee and the client to be provided with funds, the report explained.
Lanched in 2011, Kabbage is now aiming to provide $500 million worth of loans to its clients by the end of 2014, By 2015, that goal would be increased to $1 billion, WSJ reported.