Parafin, an embedded finance leader, announced that it closed a $93 million debt facility with Jefferies and Trinity Capital. And their investment has the potential to increase to $187 million.
This substantial funding from Jefferies and Trinity, both known for their strategic investments in pioneering technologies, will support Parafin’s ability to offer capital to small businesses. Earlier this year, Parafin secured $125 million from Silicon Valley Bank and Trinity Capital.
Parafin helps platforms like marketplaces, vertical SaaS, and payment processors with embedded financial services for their small business sellers. And in under three years, Parafin has partnered with Amazon, Walmart, DoorDash, and Worldpay to offer financing to hundreds of thousands of small businesses. The financial infrastructure company utilizes machine learning to develop their unique, robust underwriting model that includes over a billion data inputs from every industry vertical.
KEY QUOTES:
“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.”
– Sahill Poddar, CEO and co-founder of Parafin
“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.”
– Steven Lambe, Managing Director, Warehouse Lending at Trinity Capital
“Jefferies is proud to continue a relationship with Parafin that began in 2021. From the outset of our relationship, Parafin has experienced continuous growth and success with a world class management team. We look forward to continued success with Parafin as they grow.”
– Michael Wade, Managing Director, Securitized Markets Group, Jefferies
