Pipe, the modern capital platform known for fast, frictionless, and dilution-free funding, has successfully secured a $100m credit facility from Victory Park Capital (VPC), a global alternative investment firm with a focus on private credit.
This strategic financial boost is designed to substantially expand Pipe’s Capital-as-a-Service capabilities.
The new credit facility, which has potential future expansion up to $200m, is set to enhance Pipe’s innovative financial services. Specifically, it aims to increase the company’s yearly originations to over $1bn, targeting small and medium-sized businesses (SMBs) that have traditionally struggled to access conventional financial resources.
Pipe operates as a transformative platform that turns varied revenue streams into immediate working capital. This approach enables businesses to improve cash flow and foster growth without diluting ownership. The new funding from VPC will be instrumental in scaling Pipe’s operations and reaching more entrepreneurs and business owners in need of non-dilutive financing options.
The funding will support Pipe’s recently introduced embedded Capital-as-a-Service solution, which is tailored for vertically integrated software vendors and payment companies. This initiative has already attracted support from prominent platforms like Priority, Infinicept, and Boulevard, which collectively cater to nearly one million merchants and handle over $140bn in gross payment volume.
Tom Welch, Partner at VPC, said, “Pipe and VPC share a similar mission of providing capital solutions to businesses that have previously been overlooked by traditional sources of financing. We’re excited to partner with Luke and the rest of the Pipe team, who bring deep experience in building, launching, and scaling financial technology products.”
Luke Voiles, CEO of Pipe, expressed enthusiasm about the partnership. Voiles said, “We are thrilled to be partnering with Victory Park Capital. This additional capital will allow us to expand our existing capacity to more than $1 billion per year in originations for SMBs.
“Our goal is to provide these businesses with an unbiased, simple, user-friendly way to access capital, helping them to pursue their growth ambitions. This new facility will pair with our existing $200 million facility to support our full potential.”
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