ApplePie Capital, an online lender focused on the franchise industry, has raised $16.5m in a Series B round.
The new funding coincides with the announcement of a $180m loan purchase agreement with TowerBrook Capital to purchase franchise loans originated by ApplePie over the next two years.
Funding for the loan purchases will come from TowerBrook’s Structured Opportunities Fund and a credit facility provided by SunTrust Banks
QED Investors and Fifth Third Capital led the Series B funding.
The round also saw participation from Colchis Capital Management and existing backers Signia Venture Partners, Freestyle Capital and Prosper president Ron Suber.
Launched in January 2015 ApplePie is partnered with 40 franchise brands and to date has funded more than $50m in loans.
It claims to have returned more than $7m in principal and interest to investors.
ApplePie CEO and co-founder Denise Thomas said at its core the startup is a “growth delivery system for the franchise industry”.
She Added, “We unlock value for our franchise brand partners by providing capital to their franchisees, which helps brands grow.”
Thomas said the investment will be used to help the company scale while providing TowerBrook with access to “high-quality credits in proven small businesses”.
San Francisco-based ApplePie previously took on $6m in a Series A round led by Signia in April 2015.
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