Clearco, the Toronto-based FinTech firm, unveiled its recent triumph of securing $60m in a Series D investment raise.
Today’s announcement showcased a multifaceted approach to strengthening the firm’s financial stature, including a noteworthy equity raise and a novel asset-based financing structure.
The pivotal $60m Series D funding round saw key participation from enduring Clearco investors like Inovia Capital and Founders Circle Capital. In tandem with the equity funding, Clearco confirmed the successful conclusion of a unique committed asset-backed financing agreement with Pollen Street Capital, a global luminary in alternative asset management. This strategic collaboration with Pollen Street will allow Clearco to channel revenue-based funds to e-commerce firms that gain approval through its advanced AI-backed underwriting technology.
Describing this defining moment, Clearco CEO Andrew Curtis expressed, “We are thrilled to announce this new round of funding and the launch of a new asset-backed facility as part of a broad recapitalisation, which substantially delevers the company and creates a new and improved Clearco. All of these actions allow us to continue to support the growth of e-commerce businesses during a time of funding challenges for many companies. We are firm believers in the continued resilience and growth of e-commerce as an industry, and are committed to providing the capital and resources these businesses need to succeed.”
Digging deeper into Clearco’s operations reveals an innovative blend of AI and cutting-edge machine learning algorithms to underwrite businesses, thus enabling customers to fund essential elements like inventory and promotional invoices. Over the past year, the company recalibrated its offerings, centring its services on a simplified capital solution known as Invoice Funding. This transformation has empowered over 10,000 e-commerce entities, channelling a staggering $2.5bn to facilitate their exponential growth.
Karamdeep Nijjar, Partner at Inovia Capital, conveyed his optimism about the company’s reformation, stating, “We are excited to reinvest in Clearco not only because of the company’s success in revolutionising the way small businesses access capital but also because of the significant transformation the company has made in the last 12+ months. Clearco has retooled and re-established itself as a valuable partner for e-commerce businesses.”
Pollen Street’s Partner, Dan Khouri, resonated similar sentiments, noting, “Clearco was one of the first platforms to provide financing solutions to entrepreneurs and we’re excited to play a key role in accelerating their growth.”
The importance of Clearco’s restructuring cannot be overstated, especially when e-commerce ventures grapple with dwindling capital access. A stark 48% decline in venture capital funding marked the first half of 2023, levels unseen since before the pandemic. Clearco’s endeavours are crucial in these trying times, spotlighting its indispensable contribution to the small business financing sphere.
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