OppZo, which aims to help small and medium-sized businesses unlock access to capital, has raised $260m in debt and equity funding.
Of the funds, $5m was in equity and $255m was supplied in debt. Arcadia Funds served as the lead provider for both tranches.
The US-based FinTech company has developed an AI-powered origination and servicing platform aimed at SMBs focused on government contracting. OppZo offers asset-based working capital loans to SMBs in Opportunity Zones, which are economically-distressed areas of the U.S. that investors can earn a tax benefit when they are invested in.
Its platform provides institutional investors with the opportunity to gain an attractive risk-adjusted return that has a positive and sustainable social and economic impact on the funded communities.
OppZo co-founder and CEO Warren Reed said, “We built OppZo with one mission in mind: to help build thriving communities. Every business owner needs access to capital on terms that are fair and affordable. We understand first-hand the impacts of disparity in funding, and we’re delivering the optimal solution to the market.”
In other marketplace lending news, UK-based buy now, pay later service Zilch raised an additional $50m in funding to support its US expansion. The companyâ€™s valuation is $2bn.
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