SAN FRANCISCO–(BUSINESS THREAD)–Parafin, a fintech infrastructure startup that companies like marketplaces, SaaS verticals and payment processors rely on to launch and integrate financial services for their sellers, announced that it has raised a $60 million Series B funding round dollars led by GIC, which brings its total equity financing to $94 million. This round includes participation from new and existing investors, including Series A lead and seed investors Thrive Capital and Ribbit Capital.
Today, Parafin powers the integrated capital offerings of companies with over $100 billion in payout volume, including DoorDash Capital and Mindbody Capital. Companies using Parafin together serve more than 700,000 small and medium-sized businesses worldwide. In the second quarter of 2022, Parafin’s quarterly revenue and total funding volume grew by 87% and 77%, respectively.
“Small businesses have a huge, unmet need for capital and are poorly served by the status quo,” said Vineet Goel, co-founder of Parafin. “We make it simple, seamless and fast for any platform serving a small business to offer financial products that accelerate the growth of your small business and increase its loyalty and lifetime value.”
Before Parafin, most platforms found it too complex and expensive to launch a financial services program for their small businesses. Because Parafin is a comprehensive, vertically integrated offering that manages everything from products, underwriting, capital markets, fulfillment and marketing for its partners, companies serving small businesses can launch a white-label financial services program with Paraffin in just a few days.
Small businesses love paraffin-based financial products. These businesses can accept Capital with just a few clicks, ensuring they can get the support they need while continuing to focus on running their business. In recent surveys, more than 90% of small businesses say their perception of the platform they use has improved since the launch of a capital program powered by Parafin.
With its new capital, Parafin intends to continue to launch new and innovative products for small businesses, such as business credit cards, and further consolidate its market leadership in integrated financial services.
“Most platforms don’t recognize the amount of untapped demand from their equity vendors and how difficult it is to build these financial products internally,” said Sanyam Satia, head of engineering at Parafin. “We’re focused on solving hard infrastructure issues so platforms can better serve their vendors.”
For more information on Parafin, visit https://www.paraffin.com. For inquiries from companies interested in using Parafin to launch financial services for their small businesses, please contact info@parafin.com.
ABOUT PARAFFIN
Parafin is a full-stack integrated financial infrastructure that serves small businesses better, faster and cheaper. Parafin works with the platforms small businesses already use, such as marketplaces, payment processors and software providers, to help small businesses overcome their cash flow needs, invest in their growth and manage their business . Parafin was founded in 2020 by Sahill Poddar, Ralph Furman and Vineet Goel, three of Robinhood’s first employees. Together, they served as head of machine learning, chief data scientist, and head of risk and fraud, respectively.
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