Home CompaniesB2B Kabbage Lands Largest Credit Facilities Issued

Kabbage Lands Largest Credit Facilities Issued

by Tricia Whitlock

Kabbage, closed a $270 million credit facility from Guggenheim Securities.

The Scoop on Kabbage: 

  • Kabbage (@KabbageInc), which opened three years ago, is a platform for online merchants to borrow working capital.
  • Founders: Rob Frohwein, Marc Gorlin, Kathryn Petralia
  • They provide capital to small businesses (so far $250 mill) that have become unprofitable for traditional banks to target.
  • “Built on the idea of big data and the fact that many of these businesses are already primarily online operations, Kabbage takes into account datapoints not just from a company’s balance sheet but also their performance across different sales channels, when evaluating a loan or repayment schedule. Repayments and interest are calculated on a basic sliding scale, depending on the amount and the period over which you will repay.” -Tech Crunch
  • The opportunity: there are 15-20 million online businesses that are currently in need of capital. Online lending platforms are serving around 150,000, Kabbage is the largest with 25,000+ active customers.

 

The Scoop on the Deal:

 

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