Parafin, a company that builds embedded finance infrastructure, has announced the close of its $100 million Series C financing at a $750 million valuation. Notable Capital led the funding, with significant participation from Redpoint Ventures. Existing investors Ribbit Capital, Thrive Capital, and GIC participated in the round.
This funding round reflects growing confidence in Parafin’s approach to embedded financial services, which continues to transform how small businesses access capital and manage their operations. Parafin has seen rapid momentum, funding nearly $1 billion annually for tens of thousands of small businesses in the U.S. and Canada. Since the Series B funding round in September 2022, the company has grown volumes by 400% and expects to reach profitability within six months.
Parafin’s infrastructure enables financial services for marketplaces, vertical SaaS, and payment platforms, including global leaders like Amazon, Walmart, DoorDash, TikTok, and Worldpay. With a single integration, platforms can launch a full suite of financial products for their small business sellers, including capital, spend management, and savings tools. These services offer access to financing and help businesses thrive by leveraging real-time performance data to offer customized financial solutions.
KEY QUOTES:
“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.”
“This funding is not just a milestone for Parafin but an investment in the future of small businesses. With our machine learning-based risk models and enterprise-grade infrastructure, we’re redefining how financial services are delivered in a digital-first world. This new capital will allow us to scale existing products, ship new products, expand into new geographies, and deepen our partnerships with platforms that support the global small business economy.”
- CEO and co-founder Sahill Poddar
“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.”
- Hans Tung, Managing Partner at Notable Capital and a new board member of Parafin
“Parafin’s focus is clear: To grow small businesses via financial services on digital platforms they use everyday. By embedding financial services directly into the platforms where businesses already operate, the company helps drive growth, loyalty, and retention for platforms while empowering small businesses to thrive. Today, a small business such as a restaurant on DoorDash can get access to financing to grow their operations. As Parafin expands its reach, we’re excited to bring to life solutions that help small businesses not just access capital but also save, store, and spend money via the platforms they transact on.”
- Vineet Goel, CPTO and co-founder
