Parafin, a pioneer in embedded finance infrastructure, recently announced the close of its $100m Series C financing.
The round was spearheaded by Notable Capital, alongside substantial contributions from Redpoint Ventures, Ribbit Capital, Thrive Capital, and GIC, underlining strong investor confidence in Parafin’s innovative approach to financial services.
This company specializes in powering financial services for marketplaces, vertical SaaS, and payment platforms. High-profile clients include global giants like Amazon, Walmart, DoorDash, TikTok, and Worldpay. Parafin’s infrastructure allows platforms to rapidly deploy a comprehensive suite of financial products for their small business clients, encompassing capital access, spend management, and savings solutions.
The fresh capital will be channeled towards scaling existing offerings, launching new products, expanding into additional geographies, and deepening existing partnerships. These initiatives aim to redefine how financial services are delivered to small businesses, making them more accessible and tailored to the unique needs of each business.
Since its Series B round in September 2022, Parafin has experienced a 400% growth in volumes and is on track to achieve profitability within the next six months. The company facilitates nearly $1bn in funding annually to tens of thousands of small businesses across the U.S. and Canada.
Parafin CEO and co-founder Sahill Poddar remarked, “Since we launched Parafin, our mission has been to empower small businesses with financial services. Small businesses are the backbone of the American economy yet banks do not have their backs. Incumbent methods systematically bias against women- and minority-owned businesses. This has historically hindered small business growth. At Parafin, we’ve worked tirelessly to construct our entire company — from our products and teams to our processes — to solve this problem. For example, our machine learning-based risk models train on millions of small business performance data to determine eligibility, offers, and pricing as opposed to relying on credit scores or requiring personal guarantees. Deploying state-of-the-art models enables us to provide responsible and sustainable access to hundreds of thousands of small businesses.”
Hans Tung, Managing Partner at Notable Capital and a new board member of Parafin, commented, “What immediately drew us to Parafin was their differentiated approach to solving small business financing at scale through strategic partnerships with the world’s largest platforms. The team has executed flawlessly in building enterprise-grade infrastructure for marketplaces like DoorDash, Walmart, and Amazon, as well as their small and medium business merchants. This is beyond lending — it’s about empowering these businesses through data analytics to grow with the digital economy.”
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