Victory Park Capital, a Chicago firm whose other investments include the Giordano’s pizza chain and Fuller Brush Co, has added $75m in debt financing to help Kabbage grow its customer base.
Thomvest Ventures, an existing equity investor, also participated in the commitment.
Atlanta-based Kabbage, named after a slang term for money, uses cash advances to help online merchants buy inventory, targeting merchants using websites such as eBay and Amazon that struggle to secure debt financial from traditional lenders.
Launched in 2010, Kabbage previously raised $56m in venture capital over three rounds from investors including TPG Capital’s David Bonderman, Stephens Inc’s Warren Stephens, Mohr Davidow Ventures, BlueRun Ventures and goods transportation business United Parcel Service.