Pipe, the US-based developer of a recurring revenue trading platform, closed a $250m funding round yesterday backed by industrial equipment producer Siemens, fintech conglomerate CreditEase and financial services firm SBI Group.
They participated through Next47, CreditEase FinTech Investment Fund and SBI Investment, respectively, while investment bank Morgan Stanley took part through Counterpoint Global. The round was led by Greenspring Associates and valued Pipe at $2bn.
3L, Sound Ventures, Fin VC, Time Ventures, Seven Seven Six, MaC Ventures, Republic, private investor Guy Oseary and unnamed others filled out the round, which had an original target of $150m– a sum reportedly raised by the end of March 2021.
Pipe operates a trading platform that enables entrepreneurs and businesses to secure debt-free, non-dilutive cash flow by using their recurring revenue as an asset.
The company will use the equity financing to support international growth and expand its offering to cover all types of recurring revenue verticals, such as direct-to-consumer subscription boxes and property management.
Pipe raised $50m in funding in early March 2021, which included an undisclosed portion of secondary shares. The round was co-led by Next47 and Raptor Group, with participation from e-commerce software provider Shopify, identity authentication software producer Okta and enterprise software providers HubSpot and Slack.
MSD Capital, Republic and assorted angel investors also took part in the early March round.
Pipe had secured $6m in an initial seed tranche in February 2020 led by Craft Ventures, with participation from Fika Ventures, MaC Venture Capital, Work Life Ventures, Liquid2, Weekend Fund and private investors.
The company then obtained $10m in a seed extension four months later led by Fin VC, with the backing of Tribe Capital, Uncorrelated Ventures, Lachy Groom, Anthemis, Craft Ventures, Fika Ventures and MaC Ventures. The extension was raised alongside $50m in asset financing.
