Kafene – a point-of-sale financing platform that helps offer underserved consumers more flexible purchase options through transparent lease-to-own (LTO) agreements – recently announced it extended its Series B round to include an additional $12.6 million in new equity capital. This funding round brings Kafene’s Series B total to nearly $31 million. Kafene previously announced its initial $18 million Series B fundraising in September 2022. Third Prime led the initial fundraising and the extension alongside existing investors.
Kafene, which also recently added its first-ever Chief Revenue Officer, Jonathan Kurzner, will use the capital further to accelerate its merchant partnerships and overall commercial business while underwriting more consumers to leverage an opportunity created by broader market retreat among consumer financing companies.
The company has financed over $100 million in lease-to-own agreements in less than three years after launching the product. This product is structured in a way that is simple, consumer-friendly, and transparent, serving the more than 100 million consumers in America who are unable to access sufficient credit on fair terms. Kafene focuses on the most significant unmet needs in big-ticket categories such as furniture, appliances, electronics, tires, and other durable goods.
KEY QUOTES:
“When we announced our initial Series B, we were confident in our ability to underwrite a consumer whose conditions are inherently recessionary. Our plan continues to be to double down on point-of-sale merchant partnerships as others retreat. The thesis is playing out as predicted with unit economics turning positive late last year and consumer credit quality rising to the highest it’s been since inception. Credit performance remains strong, the balance sheet has grown, and we continue to gain traction while others pull back. This is a very exciting time in the evolution of Kafene.”
- Neal Desai, Chief Executive Officer, Kafene
“We’re very proud of what Kafene has been able to accomplish over the past four years and we believe strongly in its growth trajectory as it seizes on a significant market opportunity. What Kafene offers is a clear win-win proposition for both retailers and consumers, helping it generate continued momentum and accelerating enterprise value.”
- Wes Barton, Co-Founder and General Partner, Third Prime
