Pipe, a modern capital platform for fast and frictionless, dilution-free funding, announced the closing of a $100 million credit facility from Victory Park Capital (VPC), an alternative investment firm that specializes in private credit.
This facility—which has the potential to upsize to $200 million in the future—will support Pipe’s Capital-as-a-Service solution, enabling access to capital for millions of small and medium-sized businesses (“SMBs”) historically lacking traditional financing options.
Pipe’s recently launched embedded Capital-as-a-Service solution for vertically integrated software vendors and payment companies has already garnered support from leading platforms, including Priority, Infinicept and Boulevard, representing nearly one million merchants with $140+ billion in gross payment volume.
With Pipe’s infrastructure and APIs, partners can seamlessly embed Pipe’s proven capital offering into their own ecosystem, improving merchant experience and monetizing payments in a mutually beneficial way. And end merchants can then access capital easily based on their secure transaction data from the partner platform, bypassing many of the hurdles of traditional financing.
KEY QUOTES:
“We are thrilled to be partnering with Victory Park Capital. This additional capital will allow us to expand our existing capacity to more than $1 billion per year in originations for SMBs. Our goal is to provide these businesses with an unbiased, simple, user-friendly way to access capital, helping them to pursue their growth ambitions. This new facility will pair with our existing $200 million facility to support our full potential.”
- Luke Voiles, CEO of Pipe
“Pipe and VPC share a similar mission of providing capital solutions to businesses that have previously been overlooked by traditional sources of financing. We’re excited to partner with Luke and the rest of the Pipe team, who bring deep experience in building, launching, and scaling financial technology products.”
- Tom Welch, Partner at VPC
