Kabbage

  • FOUNDING YEAR: 2009
    LOCATION:
    United States
    REGION:
    GA
    Last Update:
    23 Apr, 2019
    Phone:
    +1 678-580-2689
    Global presence:
    United States, Ireland, India, Ireland, India
  • Kabbage provides SMBs with a line of credit 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. The company also provides white label platforms to companies wanting to start their own lending platforms. Recently, Kabbage was selected for the 2019 Forbes FinTech 50 startups list.
  • 557 VISITORS
    1892 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 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 & inventory, to payroll & 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 borrower pays back one-sixth of the total loan (for six-month loans) or one-twelfth of the total loan (for 12-month loans) apart from a monthly fee. They do not charge any early-payment fees.
    MAIN CLIENTS:
    Companies from the banking and electronic payments industry.
    EXISTING PARTNERSHIPS:
    Kabbage has partnered with business data source firms such as Authorize.Net, UPS, Sage, Stripe, Shopify, Esty, Bigcommerce, Volusion, Xero, and Liquidation.com. Kabbage also partnered with Mastercard and now extends services to Mastercard’s network of acquirers. Kabbage has partnered with Experian, which would leverage Kabbage’s automated lending platform to its institutional clients serving small businesses and consumers. Kabbage also partnered with Intuit to underwrite small businesses. Celtic Bank will finance all the loans that originate 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 minutes.

    PEOPLE

    FOUNDERS:
    Rob Frohwein, Kathryn Petralia, Marc Gorlin
    Board Members and Advisors:
    Peter Kight, Oneal Bhambani, Scott Thompson, Jonathan Ebinger, Don Butler, Steven Murray, , Bryan Stolle.
    NUMBER OF EMPLOYEES:
    501-1000
    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, and Elevate Innovation Partners.
    KEY EMPLOYEES:
    Rob Frohwein (CEO); James Chou (CTO); Robert Sharpe (COO)

    TRACTION

    VALUATION / MARKET CAP:
    $1.2 Billions in 2017
    REVENUE:
    $10M+ in 2018
    REVENUE COMMENT:
    The company reports say that its annual revenue was close to $300 million in 2018.
    TRANSACTIONS COMMENT:
    The company has provided over $6 billion loans to more than 150,000 small businesses to date. (Feb. 2019)
    COMMENT:
    The company has secured over $500 million in fixed-rate, asset-backed notes. Kabbage will use to expand the amount, payback terms, and the size of loans it makes to SMBs over the next three years. (Feb. 2017)

    MOMENTUM

    FUNDED:
    YES
    TOTAL FUNDING:
    $488.65 Millions
    DATE OF LAST FUNDING:
    Aug 2017
    TOTAL FUNDING COMMENT:
    The company will use the funds to expand its small-business lending products and also expand into Asia. (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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