Kafene, a point-of-sale financing platform, has recently garnered $12.6m in new equity capital to amass $31m in a Series B.
Kafene recently announced the extension of its Series B funding round, successfully securing an additional $12.6m in new equity capital. This augmentation elevates the total of Kafene’s Series B to a substantial near $31m.
The financing was spearheaded by Third Prime, which was also a prominent leader in the initial fundraise, alongside a cohort of existing investors.
Kafene operates with a robust focus on providing transparent LTO agreements, thus delivering more flexible purchase options to consumers who often find themselves navigating through limited financial alternatives. The platform has adeptly financed over $100m in LTO agreements in a commendably brief span, less than three years since its product was first launched. Kafene diligently serves a demography exceeding 100 million consumers in America, especially those struggling to access ample credit on equitable terms, while simultaneously focusing on unfulfilled needs in big ticket categories, such as furniture and appliances.
The fresh capital is earmarked to fortify Kafene’s merchant partnerships and bolster its overarching commercial operations. Furthermore, Kafene is poised to underwrite a broader consumer base, capitalising on an opportunity spawned by a wider market withdrawal among consumer financing enterprises.
Kafene has welcomed its inaugural chief revenue officer, Jonathan Kurzner, to the fold, signaling an intention to refine its revenue generation strategies and potentially steer towards a trajectory of accelerated growth and market permeation.
Kafene chief executive officer Neal Desai elucidated, “When we announced our initial Series B, we were confident in our ability to underwrite a consumer whose conditions are inherently recessionary. Our plan continues to be to double down on point-of-sale merchant partnerships as others retreat. The thesis is playing out as predicted with unit economics turning positive late last year and consumer credit quality rising to the highest it’s been since inception. Credit performance remains strong, the balance sheet has grown, and we continue to gain traction while others pull back. This is a very exciting time in the evolution of Kafene.”
Third Prime co-founder and general partner Wes Barton also shared, “We’re very proud of what Kafene has been able to accomplish over the past four years and we believe strongly in its growth trajectory as it seizes on a significant market opportunity. What Kafene offers is a clear win-win proposition for both retailers and consumers, helping it generate continued momentum and accelerating enterprise value.”
Before this extension, Kafene previously heralded an $18m initial Series B fundraise in September 2022, with Third Prime leading that phase as well.
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