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Weekly Funding Highlights – 31 January 2024

Welcome to our latest Weekly Funding Highlights! In this roundup, we cover developments across the funding landscape, including strategic investments, funding rounds, and innovative initiatives from key players in the industry.

YouLend agrees for GBP 4 bln (€4.6bln) financing deal

Global finance platform YouLend has concluded a private securitisation deal with JP Morgan and Castlelake, allowing it to provide an additional GBP 4 billion (€4.6 billion) in revenue-based financing to small and medium-sized enterprises (SMEs). This financing will be accessible through various global e-commerce sites and tech companies, including Amazon, Dojo, eBay, and Just Eat. The collaboration with JP Morgan reflects YouLend’s commitment to supporting SMEs by bridging their funding gap. YouLend’s advanced AI-based decision-making model aims to promote financial inclusion by accurately assessing business health and expanding finance accessibility to underserved SMEs. This deal follows YouLend’s recent milestone of providing funding to 150,000 SMEs across the UK, EU, and the US since its inception in 2015. Read more

Sunbit, a FinTech pioneer, bags $310m (€285m) from Citi and Ares to fuel BNPL growth

Sunbit, a FinTech industry pioneer, has achieved a major milestone by securing a $310 million (€285 million) debt warehouse facility, led by Citi and Ares Management Credit funds. Known for transforming the credit landscape since 2016, Sunbit focuses on innovative financial solutions, particularly in the Buy Now, Pay Later (BNPL) sector. This funding boost is set to amplify Sunbit’s operations, meeting the rising demand for its BNPL services and other financial products. The company’s impact extends across sectors, dominating BNPL in automotive services and growing swiftly in dentistry. With a commitment to inclusivity, Sunbit maintains a 90% approval rate for financing options and a policy of zero additional fees. CEO Arad Levertov highlights a customer-first ethos and strategic growth, expressing gratitude to Citi and Ares for their support in securing the facility. Read more

Bilt Rewards secures $200m (€183m) investment, propelling valuation to $3.1bn (€2.8bn)

Bilt Rewards, a leader in the rent and neighborhood rewards space, has secured a substantial $200 million (€183 million) equity investment in a funding round led by General Catalyst, with significant participation from Eldridge and existing investors. This funding has elevated Bilt’s valuation to $3.1 billion (€2.8 billion). Bilt, launched in April 2022, enables consumers to earn rewards on rent payments and has grown rapidly through the Bilt Rewards Alliance, now including nearly four million households. The investment will expand the alliance across housing sectors and enhance Bilt’s Neighborhood Rewards program, fostering loyalty with local businesses. Bilt also plans to enter the mortgage payment rewards sector. Chairman Ken Chenault and CEO Ankur Jain expressed enthusiasm for transforming the rental and mortgage payments market and building a community-centric ecosystem. Read more

Bastille Networks seizes $44m (€40m) Series C funding, led by Goldman Sachs for wireless threat intelligence

Wireless threat intelligence technology leader, Bastille Networks, has secured a substantial Series C funding of $44 million (€40 million), led by Growth Equity at Goldman Sachs Asset Management, with participation from existing investor Bessemer Venture Partners. Bastille, known for its innovative wireless security approach, has attracted top-tier investors since its Seed stage, including Comcast, Bessemer, and individual backers. The company provides unmatched visibility and control over wireless devices in corporate airspace, utilizing patented software-defined radio and advanced machine learning algorithms to identify and localize potential threats. The funding will support Bastille’s growth as it triples Annual Recurring Revenue, with CEO Chris Risley expressing enthusiasm about the strategic alliance with Goldman Sachs and the strength of Bastille’s products. Read more

Mondu raises €30 million in debt financing round

Germany-based B2B Buy Now, Pay Later (BNPL) payments provider Mondu has raised €30 million in a debt financing round from Vereinigte Volksbank Raiffeisenbank (VVRB), supplementing VVRB’s previous €20 million investment in October 2022. With a total financing of EUR 50 million, Mondu plans to further expand across Europe and advance its development strategies. Since its October 2021 launch, Mondu has raised EUR 115 million and engaged in collaborations to support expansion plans. The recent funding will strengthen Mondu’s commitment to enhancing the B2B BNPL ecosystem and deepening its partnership with VVRB, which aims to assist in expansion and the development of new solutions. Mondu’s growth in 2023 includes partnerships with retailers and B2B marketplaces, FCA registration, and collaborations such as the one with Mangopay for flexible payment infrastructure. The company also launched a Digital Trade Account and expanded its BNPL product to field sales and email orders. Read more

AVLA secures $25m (€23m) to enter US market

AVLA, a leading provider of surety and trade credit solutions based in Chile, has successfully raised $25 million (€23 million) in funding from prominent investors such as Creation Investments Capital Management, DEG Invest, and Altra Investments. This funding, supporting AVLA’s ambitious international growth strategy, particularly in entering the lucrative US market, is expected to help scale operations and reinforce the company’s presence among small and medium-sized enterprises (SMEs) across Latin America and beyond. AVLA, recognized among the top five providers of surety and trade credit solutions in the region, generated approximately $150 million (€138 million) in insurance revenue in 2023. The company, headquartered in Chile, operates in key markets including Brazil, Mexico, Chile, and Peru. AVLA aims to reach 150,000 clients and generate $350 million (€322 million) in consolidated revenue in the coming years, building on its successful entry into Mexico and Brazil. Read more

Porch receives $25m (€23m) by securing strategic business collaboration with Aon

Porch Group, Inc. has received $25 million (€23 million) through a strategic collaboration agreement with Aon, with an additional expected $5 million (€4.5 million) over the next four years. The collaboration involves both companies working together to secure reinsurance coverage for 2024 during the upcoming renewal on April 1, 2024. As part of the arrangement, a release of claims related to the Vesttoo fraud has been executed. Notably, Porch has not waived any claims against entities not affiliated with Aon and is committed to actively seeking recovery. Porch’s CEO, Matt Ehrlichman, expressed enthusiasm about the partnership, emphasizing Aon’s reputation in the insurance industry. Aon recently announced a significant acquisition of NFP, valued at an estimated $13.4 billion (€12 billion) and funded with cash and Aon stock, marking a strategic expansion into the middle-market segment. Read more

Kneat seals $15m (€13m) public offering led by Cormark Securities for global expansion

Kneat, a Canadian company with operational headquarters in Limerick, Ireland, has successfully completed a significant public offering, securing $15 million (€13 million). The financial deal involves a consortium of investment dealers, led by Cormark Securities Inc., committing to acquire 4,615,600 common shares directly from Kneat’s treasury at a price of $3.25 (€2.99) per common share. Kneat is known for its next-generation Kneat Gx SaaS platform, designed for configuring various work processes, including equipment and computer validation and quality document management, with a focus on regulatory compliance. The platform facilitates online authoring, reviewing, approval processes, and robust testing, benefiting clients globally with productivity boosts and enhanced standards in data integrity and compliance. Read more

 

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