Kabbage, Inc., an Atlanta, Georgia-based fintech firm that facilitates direct funding to SMEs through an automated lending platform, as per recent reports this week, has closed a whopping $700 million debt funding based on asset-backed securitization. The huge amount of funding is in itself a record-breaking event, marking this as the largest asset-backed securitization by a small business online lending platform to date.
With this new funding, which was participated by new and existing investors, Kabbage has raised a total combined debt and equity funding to $2.3 billion, raising $940 million in total debt funding. Kabbage plans to utilize this new funding to pay down one of its existing asset-backed securitization transactions.
Scott Rosenberg, CFO, Kabbage, says, “The new transaction positions the company for continued milestone growth as small businesses accessed more than $2 billion through Kabbage last year and more than $600 million already in the first quarter of 2019.”
The Atlanta-based Kabbage was founded in 2009 and has since its establishment extended more than $6.5 billion in loans to over 170,000 small businesses in the US. Furthermore, Kabbage incorporates underwriting the loans using non-traditional data, i.e. shipping records, for example, to originate loans and monitor if the business is improving or not, to decide if to extend more credit or not, when needed.
Last year, in 2018, Kabbage completed the acquisition of lending platform Orchard, enhancing its data analytics capabilities. Also, earlier this year, the company announced its plans to collaborate with Alibaba.com, offering its “Pay Later” financing program to buyers.