Kabbage

  • FOUNDING YEAR: 2009
    LOCATION:
    United States
    REGION:
    GA
    Last Update:
    1 Oct, 2018
    Phone:
    +1 678-580-2689
    Global presence:
    United States, Ireland, India, Ireland, India
  • Kabbage provides SMBs with a Line of Credit (LOC) by evaluating various alternative data parameters. It leverages data generated through business activity such as accounting data, online sales, shipping, and dozens of other sources to understand performance and deliver fast, flexible funding in real time. Kabbage also provides white label platforms to companies wanting to start their own lending platforms. The company has been featured on the top lists of Forbes, Fast Company, Inc 500, and most recently, CNBC’s Disrupter list.
  • 528 VISITORS
    1812 VIEWS
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    “Kabbage is one of the leading companies in the lending space, having built their technology & data platform from the ground up before they even launched to customers. Their method of using real data in the loan approval process, rather than relying solely on credit scores, is unique and innovative."
    Author: Mariano Belinky, managing partner at Santander InnoVentures
    Kabbage is a mobile based real-time lending platform that provides working capital loans and credit line services for small businesses.

    FOCUS

    PRODUCTS & SERVICES:
    Online loans (LOC) for small businesses. Kabbage offers a variety of loans up to $250,000 with types scaling from SBA and small-business credit cards, to online and peer-to-peer, to equipment and inventory, to payroll and professional loans. It is a quick and simple online process that helps small business to get funding for the growth of their business.
    REVENUE MODEL:
    Kabbage charges (1.5% - 12%/month) fee on issued loans and additional monthly fees. Every month, the borrwer pays back 1/6 of the total loan (for six-month loans) or 1/12 of the total loan (for 12-month loans) plus a monthly fee. They do not charge any early payment fees.
    MAIN CLIENTS:
    Companies from the banking and electronic payments industry.
    EXISTING PARTNERSHIPS:
    Partnered with business data source firms such as Authorize.Net, UPS, Sage, Stripe, Shopify, Esty, Bigcommerce, Volusion, Xero, Liquidation.com Partnered with Mastercard that allow services to MasterCard’s network of acquirers. Partnered with Experian that would leverage Kabbage’s automated lending platform to its institutional clients serving small businesses and consumers. Partnerted with Intuit - to underwrite small businesses Celtic Bank would finance all the loans that are originated in the US on Kabbage's platform, Scotiabank
    COMMENT
    It uses real-time data in the loan approval process instead of relying on credit history. Kabbage has used social media analytics to quantify a borrower's propensity to repay. Kabbage also recognizes fingerprint authentication and ties into instant mobile check deposit to deliver capital in a few minute.

    PEOPLE

    FOUNDERS:
    Rob Frohwein, Kathryn Petralia
    Board Members and Advisors:
    Peter Kight, Oneal Bhambani, Scott Thompson, Jonathan Ebinger, Don Butler, Steven Murray, Bryan Stolle
    NUMBER OF EMPLOYEES:
    201-500
    INVESTORS:
    SoftBank Group, Credit Suisse, Reverence Capital Partners, ING, Scotiabank, Recruit Strategic Partners, BlueRun Ventures, United Parcel Service, Thomvest Ventures, Santander InnoVentures, Mohr Davidow Ventures, Lumia Capital, TCW Group, Guggenheim Partners, Victory Park Capital, SV Angel, Western Technology Investment, Hard Yaka, Princeville Global, Northgate Capital, Canvas Ventures, Mavcap, Wildcat Venture Partners, Elevate Innovation Partners
    KEY EMPLOYEES:
    Rob Frohwein (CEO), James Chou (CTO), Robert Sharpe (COO)

    TRACTION

    VALUATION / MARKET CAP:
    $1 Billion in 2015
    REVENUE COMMENT:
    2016 Revenue value
    TRANSACTIONS VALUE:
    $2.5 Billions
    TRANSACTIONS COMMENT:
    The company has provided over $3.5B loans to more than 125,000 small businesses to date (Nov 2017).
    COMMENT:
    The company has secured over $500 million in fixed-rate, asset-backed notes, money that it will use to expand the amount, payback terms and size of loans it makes to SMBs over the next three years. (Feb. 2017).

    MOMENTUM

    FUNDED:
    YES
    TOTAL FUNDING:
    $500.65 Millions
    DATE OF LAST FUNDING:
    Aug 2017
    TOTAL FUNDING COMMENT:
    The company is planning to use the funds to expand its small business lending products and also to expand into Asia region. (Aug. 2017)
    FUNDING SERIES:
    SERIES A
    $6.65 Millions Closed: Jan 2011
    SERIES B
    $17 Million Closed: Aug 2011
    SERIES C
    $30 Millions Closed: Sep 2012
    SERIES D
    $50 Millions Closed: May 2014
    SERIES E
    $135 Million Closed: Oct 2015
    SERIES F
    $250 Millions Closed: Aug 2017
    DEBT FUNDING:
    $1.06 Billions
    LISTED:
    NO

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