Online lending platform Kabbage has agreed to acquire all the assets of Orchard, a technology and analytics developer for the online lending space.
Through the acquisition, Kabbage will be allowed to integrate Orchard’s technology to bolster its data capabilities and support future product development and services.
Orchard co-founders Matt Burton and David Nitkof will both join leadership roles at Kabbage. Alongside this, Kabbage will add over twenty of Orchard’s staff within advanced analytics, data science and engineering roles, to its New York office.
Orchard simplifies mass-data analysis required for capital market transactions and online financial services. Its technology is capable of data visualisation, augmentation and predictive modelling to analyse thousands of variables and outcomes to support better marker insights.
Originators can use Orchard to strengthen their lending businesses by diversifying institutional capital sources, improving data quality, gaining access to benchmarks and streamlining reporting. Investors can use the platform to get deeper insights in the market to identify new investment opportunities, and improve risk management.
Headquartered in Atlanta, Kabbage leverages data generated through business activity such as accounting data, online sales, shipping and dozens of other sources to understand performance and deliver fast, flexible funding in real time.
Atlanta-based Kabbage will use the forecasting and predictive analytics tools to enhance its internal operations to bolster its automated underwriting as well as guide it towards future products.
Kabbage CEO Rob Frohwein said, “As a strategic customer of Orchard, we know first-hand of the company’s prowess with predictive analytics and advanced automation. We are impressed with the company’s mission and capabilities, but above all, we believe in the team.”
Earlier in the year, Kabbage joined a consortium which is aiming to improve the cybersecurity of FinTech companies. Others part of the group include Citigroup, Depository Trust & Clearing Corporation, Zurich Insurance Group and Hewlett Packard Enterprise.
Kabbage received $450m in funding last year across two separate rounds. Late last year, the lender picked up $200m from Credit Suisse to support the expansion of its AI-based loans. Prior to the funding, Kabbage collected $250m from Softbank to further the development of its technology.
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