Telecommunications and internet group SoftBank agreed yesterday to invest $250m in US-based business finance platform Kabbage
Kabbage runs an online platform that uses an automated system to lend money to businesses in a space of minutes. It has provided almost $3.5bn in financing to more than 100,000 companies since the platform was launched in 2011.
SoftBank’s investment will be used to further develop Kabbage’s software, which it also licenses to financial services firms to power their small and medium-sized business lending. Proceeds will also go to expanding its lending, non-lending and business services offerings.
David Thevenon, managing director at SoftBank, said: “SoftBank invests in market-leading companies that dramatically improve the customer experience and expand markets through breakthrough technology and data capabilities.
“We invested in Kabbage because their unique automated lending platform leverages open data networks and best positions them to empower small businesses around the world.”
Rob Frohwein, Kabbage’s co-founder and CEO, added: “Our partnership with SoftBank accelerates our goal of providing a suite of services to small businesses globally that is centred on real-time and persistent access to a wide variety of data.
“SoftBank’s scale, global reach, relationships and unparalleled expertise in building transformative industry leaders make them an ideal partner for Kabbage.”
Kabbage has now raised about $490m since it was founded in 2009, its last round being a $135m series E led by investment firm Reverence Capital Partners in late 2015 that valued it at $1bn.
Logistics company UPS, financial services firm Santander and human resources provider Recruit also took part in the round through their UPS Strategic Enterprise Fund, Santander InnoVentures and Recruit Strategic Partners units, as did banks ING and Scotiabank, Yuan Capital, BlueRun Ventures and Thomvest Ventures.
UPS, an investor in Kabbage since its $17m series B round in 2011, also took part in the company’s $50m series D round in 2014 along with SoftBank, Thomvest Ventures, Bluerun Ventures, TCW/Craton, Lumia Capital and Mohr Davidow Ventures.