Toronto-based fintech company Clearco recently announced the completion of multiple actions to recapitalize its business and solidify its position as the leading provider of growth capital to e-commerce businesses. The deals include a $60 million equity raise from existing investors and a new asset-backed financing facility, which provides up to $100 million in financing capacity, and is expected to support $850 million of Clearco originations over the next two years. These accomplishments herald a new era at Clearco and mark the culmination of over a year of transformational change spanning technology, product and management.
The $60 million Series D round was led by longtime Clearco investors Inovia Capital and Founders Circle Capital. Along with the funding round, Clearco announces the closing of a new committed asset-backed facility from Pollen Street Capital (a leading global alternative asset management firm). The Pollen Street facility is going to be used to fund revenue-based advances to e-commerce businesses that have been approved for funding through Clearco’s AI-backed underwriting model.
Over the last year, Clearco pivoted its product to focus on a streamlined capital solution, Invoice Funding, with predictable payment amounts and terms that are easy and hassle-free. And Clearco uses AI and proprietary machine learning-based technology to underwrite businesses and help customers fund inventory and marketing invoices. The company funded over 10,000 e-commerce businesses to date, advancing over $2.5 billion to help facilitate growth.
Clearco customers are able to access between $10,000 and $2 million in Invoice Funding with predictable payment amounts over periods typically ranging from 4-6 months and no hidden fees. And Clearco’s Invoice Funding product provides a stable source of working capital for companies looking to scale their operations and unlock cash flow, helping those merchants to grow in a market where lenders continue to retract from providing capital.
KEY QUOTES:
“We are thrilled to announce this new round of funding and the launch of a new asset-backed facility as part of a broad recapitalization, 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.”
- Andrew Curtis, CEO of Clearco
“We are excited to reinvest in Clearco not only because of the company’s success in revolutionizing 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. We’re bullish about Clearco’s future and are confident the operational changes and newfound discipline and focus will create continued success for Clearco and 10,000+ customers.”
- Karamdeep Nijjar, Partner at Inovia Capital
“Pollen Street is proud to support Clearco’s mission to expand access to capital to e-commerce business. 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.”
- Dan Khouri, Partner at Pollen Street
