Embedded FinTech Parafin boosts infrastructure with $125m warehouse facility

Embedded FinTech Parafin boosts infrastructure with $125m warehouse facility

Parafin, a full-stack embedded financial services company, has successfully secured a $125m warehouse facility.

The funding comes from Silicon Valley Bank (SVB), a division of First Citizens Bank, and Trinity Capital, strengthening Parafin’s financial capabilities.

The $125m investment is aimed at enhancing Parafin’s capacity to provide capital to small and medium-sized businesses on major platforms like DoorDash and Amazon. SVB, through its national FinTech practice, along with Trinity, supports Parafin’s innovative machine learning-based underwriting model which evaluates sales performance to customize financing offers effectively.

Parafin’s operational model focuses on empowering companies, including marketplaces, vertical SaaS, and payment processors, to launch and manage embedded financial services.

By simplifying complex financial operations such as underwriting and compliance, Parafin allows its partners to provide timely and personalized financing solutions to their sellers, thereby facilitating business growth and scalability in a challenging economic landscape.

Parafin CEO Sahill Poddar said, “Small businesses often face barriers to financing. Parafin’s goal is to help them overcome those challenges, and get them the capital they need. We’re thrilled to partner with SVB and Trinity, which will expand our financial service offerings and capacity to supply sellers with fast and flexible financing to scale their businesses.”

Steven Lambe, Trinity Capital Managing Director Steven Lambe added, “We’re proud to partner with the teams at Parafin and SVB to provide this warehouse financing facility. Parafin’s impressive financing platform will continue to empower small and medium sized businesses with flexible capital solutions.”

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