New York-based online payment solutions provider Bread has secured $126m of equity and debt financing.
The round of equity was led by Menlo Ventures and also saw commitments from firms including Bessemer Venture Partners, RRE Ventures, among others. Victory Park Capital supplied the debt facility.
The company offers online retailers custom monthly payment solutions, allowing sellers to modify payment plans on various products. The platform is transparent, showing the customers the fixed fee each month.
Over the past year, Bread’s volume has grown 5x, with bigger merchants picking up the platform.
The capital injection will be used to grow Bread’s portfolio of merchant partners and to grow its engineering team so it can improve the product and consumer experience.
Bread co-founder and CEO Josh Abramowitz said, “We are building online-focused, next-generation solutions. Current private-label options were built for an offline world. They don’t speak the interactive language of e-commerce and don’t work well on the web.
“Bread’s technology offers a different type of solution. It is optimized for the web, and designed to bring purchase finance into the online era.”
Following the transaction, Menlo managing partners Mark Siegel will join Bread’s board of directors.
The company received a $14.3m Series A funding round in 2015, with Bessemer Venture Partners leading the investment.
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