Parafin, an innovator in embedded finance, has successfully closed a $93m debt facility with Jefferies and Trinity Capital, with the potential to increase funding to $187m.
Parafin’s primary function is to enable platforms such as marketplaces, vertical SaaS, and payment processors to offer embedded financial services to their small business sellers.
Utilising advanced machine learning, Parafin has developed a robust underwriting model that processes over a billion data inputs across various industry verticals. This innovative approach has allowed Parafin to partner with major companies like Amazon, Walmart, DoorDash, and Worldpay, providing financing solutions to hundreds of thousands of small businesses in under three years.
Earlier this year, Parafin also secured $125m from Silicon Valley Bank and Trinity Capital.
Sahill Poddar, CEO and co-founder of Parafin, said, “Our goal is to solve small business financial services at scale. We do so by seamlessly integrating our products on platforms that small businesses use to run their operations. This new funding reflects the confidence that Jefferies and Trinity have in our vision and our ability to innovate within the financial services space.”
Steven Lambe, Managing Director, Warehouse Lending at Trinity Capital, commented on the collaboration, ““We are pleased to expand our partnership with Parafin, supporting their growth as they scale operations.
“This also marks our first formal partnership with Jefferies reflecting our intention to collaborate with leading financial institutions to provide ABL facilities for innovative companies.”
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