December 1, 2023
Finance Technologies

Kabbage pulls in $700 million in debt funding

Alternative financing start-up Kabbage closed a $700 million asset backed securitisation this week, reports Julie Muhn at Finovate.

The amount of funding is record-breaking, marking the largest asset-backed securitization by a small business online lending platform to date.

The new transaction, which saw contributions from new and existing investors, brings Kabbage’s total combined debt and equity funding to $2.3 billion and raises its total debt funding to $940 million. The company plans to use the funds to pay down one of its existing asset-backed securitisation transactions.

The company’s CFO Scott Rosenberg says, “The new transaction positions the company for continued milestone growth as small businesses accessed more than $2 billion through Kabbage last year and more than $600 million already in the first quarter of 2019.”

Kabbage was founded in 2009 and has since extended more than $6.5 billion in loans to more than 170,000 small businesses in the US. The company underwrites the loans using non-traditional data, such as shipping records, to originate loans and monitor the business’ improvement to extend more credit, if needed.

In 2018, Kabbage acquired lending platform Orchard to enhance its data analytics capabilities.

Earlier this year, Kabbage announced plans to offer its Pay Later financing program to’s buyers.

Kabbage pulls in 0 million in debt funding
Kabbage pulls in 0 million in debt funding

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