PayJoy, a US-based smartphone financing service backed by telecommunications firm Orange, has secured $20m in a series B round led by investment firm Greylock Partners.
Core Innovation Capital and Union Square Ventures (USV) also participated in the round, which the company said increased its total equity and debt financing to approximately $70m. Josh McFarland, a partner at Greylock, has joined the PayJoy board of directors in conjunction with the round.
Founded in 2015, PayJoy has developed financing software that enables consumers to pay for smartphones in instalments, using the phone itself as collateral. It now plans to form new partnerships with chipmakers, lenders and original equipment manufacturers worldwide.
The company raised $18m in a 2016 round that included an $8.5m series A equity portion led by USV and backed by Orange’s the early-stage investment arm, Orange Digital Ventures, in addition to Core Innovation Capital, Draper Nexus Ventures and Fenway Summer Ventures.
Western Technology Investment provided $4m in venture debt in conjunction with the series A funding and a further $5.7m in private lending capital. Red Swan Ventures and Metamorphic Ventures had backed a $2.3m seed round for PayJoy in 2015 that followed $1m in debt financing.