Parafin Closes $93M Debt Facility with Jefferies and Trinity Capital Inc.
Parafin, a leader in embedded finance, has secured a $93 million debt facility from Jefferies and Trinity Capital Inc., potentially expandable to $187 million. This follows a $125 million funding earlier this year from Silicon Valley Bank and Trinity Capital Inc. Parafin partners with major platforms like Amazon, Walmart, DoorDash, and Worldpay to offer financing to small businesses.
The company uses machine learning and over a billion data inputs to develop a robust underwriting model. This new funding reinforces Parafin's mission to solve small business financial services at scale by integrating their products into platforms that small businesses use for operations.
Parafin, un leader nella finanza integrata, ha ottenuto un prestito di 93 milioni di dollari da Jefferies e Trinity Capital Inc., potenzialmente espandibile a 187 milioni di dollari. Questo avviene dopo un finanziamento di 125 milioni di dollari earlier quest'anno da Silicon Valley Bank e Trinity Capital Inc. Parafin collabora con importanti piattaforme come Amazon, Walmart, DoorDash e Worldpay per offrire finanziamenti alle piccole imprese.
L'azienda utilizza l'apprendimento automatico e oltre un miliardo di dati per sviluppare un modello di sottoscrizione robusto. Questo nuovo finanziamento rafforza la missione di Parafin di risolvere i servizi finanziari per le piccole imprese su larga scala integrando i loro prodotti nelle piattaforme che le piccole imprese utilizzano per le operazioni.
Parafin, un líder en finanzas integradas, ha asegurado una línea de crédito de 93 millones de dólares de Jefferies y Trinity Capital Inc., que podría ampliarse a 187 millones de dólares. Esto ocurre después de un financiamiento de 125 millones de dólares a inicios de este año de Silicon Valley Bank y Trinity Capital Inc. Parafin colabora con plataformas importantes como Amazon, Walmart, DoorDash y Worldpay para ofrecer financiamiento a pequeñas empresas.
La empresa utiliza aprendizaje automático y más de mil millones de entradas de datos para desarrollar un modelo de suscripción robusto. Este nuevo financiamiento refuerza la misión de Parafin de resolver los servicios financieros para pequeñas empresas a gran escala, integrando sus productos en las plataformas que las pequeñas empresas utilizan para sus operaciones.
파라핀은 내장 금융 분야의 선두주자로서 Jefferies 및 Trinity Capital Inc.로부터 9,300만 달러의 부채 금융을 확보했으며, 이는 최대 1억 8,700만 달러로 확장 가능할 수 있습니다. 이는 올 해 초 Silicon Valley Bank 및 Trinity Capital Inc.로부터 받은 1억 2,500만 달러의 자금 조달 이후의 일입니다. 파라핀은 아마존, 월마트, 도어대시, 월드페이와 같은 주요 플랫폼과 협력하여 소규모 기업에 대한 금융 지원을 제공합니다.
이 회사는 기계 학습 및 10억 개 이상의 데이터 입력을 사용하여 강력한 언더라이팅 모델을 개발합니다. 이번 신규 자금 조달은 파라핀이 소규모 기업의 금융 서비스를 대규모로 해결하겠다는 사명을 강화하며, 이 업체의 제품을 소규모 기업이 운영에 사용하는 플랫폼에 통합합니다.
Parafin, un leader dans le domaine de la finance intégrée, a obtenu un financement d'une dette de 93 millions de dollars de Jefferies et Trinity Capital Inc., pouvant potentiellement être étendu à 187 millions de dollars. Cela fait suite à un financement de 125 millions de dollars plus tôt cette année de la Silicon Valley Bank et de Trinity Capital Inc. Parafin s'associe à des plateformes majeures comme Amazon, Walmart, DoorDash et Worldpay pour offrir des financements aux petites entreprises.
L'entreprise utilise l'apprentissage automatique et plus d'un milliard de données pour développer un modèle d'évaluation robuste. Ce nouveau financement renforce la mission de Parafin de résoudre les services financiers pour les petites entreprises à grande échelle en intégrant ses produits dans les plateformes que les petites entreprises utilisent pour leurs opérations.
Parafin, ein führendes Unternehmen im Bereich Embedded Finance, hat eine Schuldenerleichterung in Höhe von 93 Millionen Dollar von Jefferies und Trinity Capital Inc. gesichert, die potenziell auf 187 Millionen Dollar ausgeweitet werden kann. Dies folgt auf eine Finanzierung von 125 Millionen Dollar zu Beginn dieses Jahres von der Silicon Valley Bank und Trinity Capital Inc. Parafin arbeitet mit großen Plattformen wie Amazon, Walmart, DoorDash und Worldpay zusammen, um kleinen Unternehmen Finanzierungen anzubieten.
Das Unternehmen nutzt Maschinenlernen und über eine Milliarde Dateneingaben, um ein robustes Underwriting-Modell zu entwickeln. Diese neue Finanzierung stärkt Parafins Mission, die Finanzdienstleistungen für kleine Unternehmen im großen Maßstab zu lösen, indem ihre Produkte in die Plattformen integriert werden, die kleine Unternehmen für ihre Operationen nutzen.
- Secured $93 million debt facility, potentially expandable to $187 million
- Partnerships with major platforms like Amazon, Walmart, DoorDash, and Worldpay
- Utilizes machine learning and over a billion data inputs for underwriting
- Earlier secured $125 million funding from Silicon Valley Bank and Trinity Capital Inc.
- None.
Insights
The $93M debt facility secured by Parafin from Jefferies and Trinity Capital is a significant development, potentially expanding to
Parafin's embedded finance model represents a significant technological innovation in the financial services sector. By integrating their offerings into platforms that small businesses already use, they're reducing friction in accessing capital. The company's use of machine learning for underwriting, incorporating vast amounts of data across industry verticals, is particularly noteworthy. This approach likely allows for more accurate risk assessment and potentially fairer lending practices. The partnerships with major tech platforms suggest that Parafin's technology is scalable and robust. The substantial funding will likely accelerate their tech development, potentially leading to more sophisticated financial products and expanded market reach.
Parafin's success in securing significant funding and partnerships indicates a growing market demand for embedded financial services. The company's focus on small businesses, a traditionally underserved segment, positions it well in a large, untapped market. Partnerships with industry giants like Amazon and Walmart provide Parafin with access to a vast customer base, potentially driving rapid scaling. The company's growth in under three years is impressive, suggesting strong product-market fit. However, the embedded finance space is becoming increasingly competitive, with both fintech startups and established financial institutions vying for market share. Parafin's continued success will likely depend on its ability to maintain technological edge and expand its platform partnerships.
Parafin enables platforms such as marketplaces, vertical SaaS, and payment processors with embedded financial services for their small business sellers. In under three years, Parafin has partnered with Amazon, Walmart, DoorDash, and Worldpay to offer financing to hundreds of thousands of small businesses. The financial infrastructure company uses machine learning to develop their unique, robust underwriting model that includes over a billion data inputs from every industry vertical.
Sahill Poddar, CEO and co-founder of Parafin, shared, “Our goal is to solve small business financial services at scale. We do so by seamlessly integrating our products on platforms that small businesses use to run their operations. This new funding reflects the confidence that Jefferies and Trinity have in our vision and our ability to innovate within the financial services space.”
This investment is not just a financial boost but a strategic reinforcement of Parafin’s mission to help grow the business economy.
“We are pleased to expand our partnership with Parafin, supporting their growth as they scale operations,” said Steven Lambe, Managing Director, Warehouse Lending at Trinity Capital. “This also marks our first formal partnership with Jefferies reflecting our intention to collaborate with leading financial institutions to provide ABL facilities for innovative companies.”
“Jefferies is proud to continue a relationship with Parafin that began in 2021,” said Michael Wade, Managing Director, Securitized Markets Group, Jefferies. “From the outset of our relationship, Parafin has experienced continuous growth and success with a world class management team. We look forward to continued success with Parafin as they grow.”
For more information about Parafin, please visit parafin.com or contact media@parafin.com.
About Parafin
Parafin is a financial infrastructure company that provides platforms with embedded financial products for their small business sellers by abstracting the complexity of capital markets, underwriting, servicing, compliance and customer support. By powering the financial services of marketplaces and payment processors, small businesses are able to run and grow themselves despite uncertain economic conditions. In less than three years, Parafin has partnered with Amazon, DoorDash, Walmart, TikTok, Worldpay, and more platforms to serve hundreds of thousands of businesses and extended over
About Trinity Capital Inc.
Trinity Capital Inc. (Nasdaq: TRIN), an internally managed business development company, is a leading provider of diversified financial solutions to growth-stage companies with institutional equity investors. Trinity Capital's investment objective is to generate current income and, to a lesser extent, capital appreciation through investments, including term loans and equipment financings and equity-related investments. Trinity Capital believes it is one of only a select group of specialty lenders that has the depth of knowledge, experience and track record in lending to growth stage companies. For more information, please visit the Company's website at www.trinitycap.com.
About Jefferies
Jefferies is a leading global, full-service investment banking and capital markets firm that provides advisory, sales and trading, research and wealth and asset management services. With more than 47 offices in 21 countries around the world, we offer insights and expertise to investors, companies and governments.
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Source: Parafin
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