Kabbage, the Atlanta-based digital lending unicorn, has acquired Radius Intelligence, a data intelligence platform that serves small businesses. Though terms of the acquisition were not disclosed, Radius had previously raised about $120 million from investors including Founders Fund, David Sacks, Salesforce Ventures, AME Cloud Ventures and Jared Leto.
Kabbage CEO Rob Frohwein says that Radius’s data capabilities “further differentiate us from other SMB-focused fintech companies.” Radius’s platform houses information on over 20 million businesses in the U.S., which it derives from partners like Oracle, Salesforce, Marketo and others.
This data can now be employed to feed Kabbage’s algorithms, which it uses to determine loan rates for its small business customers.
This is Kabbage’s second data-focused acquisition, following its purchase of online lending firm Orchard in 2018. Immediately following, CTO Scott Rosenberg told Hypepotamus that they were keeping M&A activities top of mind.
“This helps drive speed to market, to expand the business platform, and the opportunity to drive those small businesses,” he said at the time.
Radius Intelligence launched in 2012 and serves customers like Square, Sam’s Club, First Data, American Express, United Airlines and Zenefits. Before the acquisition, Kabbage was also a Radius customer.
Kabbage will keep Radius’s 20 employees in San Francisco and bring on its CEO, Joel Carusone.
“As a company dedicated to small business analytics and data management, we’ve always had a deep respect for Kabbage’s data-driven technology and focus,” said Carusone in a statement. “Our companies have complementary technical architectures and domain experience for decision making. With Kabbage, we can build a more sophisticated analytics solution to identify, reach and serve small businesses.”
Founded in 2008, Kabbage has now served over 200,000 small businesses, providing them with over $7 billion of working capital.