Kabbage Closes on $12 Million Debt Facility from Western Technology Investment Financing Will Enable Company to Extend Its Business Model Providing Working Capital to Online Merchants
ATLANTA, Dec. 13, 2011 /PRNewswire/ -- Kabbage, Inc., a provider of working capital for online merchants, announced today that it has obtained $12 million in debt financing from Western Technology Investment (WTI), a private investment firm based in Silicon Valley. The financing will enable Kabbage to expand the working capital available to its customer base of more than 10,000 e-commerce companies.
Kabbage, which officially launched in October, 2010, has become a critical piece of the operational puzzle for many online merchants. Faced with daunting requirements and even reticence from traditional sources of funding, online merchants have turned to Kabbage for the working capital they need to grow their businesses. Currently available only to U.S. businesses, Kabbage is generating more than 35% compounded monthly growth in all of its key metrics.
"Beyond the raw dollars of this relationship is a shared passion for the small businesses that are the key to our nation's economic recovery," said Rob Frohwein, Kabbage CEO. "Kabbage and WTI are committed to helping small businesses get the cash they need to buy more inventory, upgrade their systems, market their products and hire more employees. Today's announcement is good news for Kabbage and even better news for small businesses and our economy in general."
Western Technology's new participation in Kabbage is the first for the firm. Founded in 1980, WTI has provided venture debt to leading companies including Facebook, Google, Palantir, Youku, Brocade Networks, Juniper Networks, InfoSeek, IDEC Pharmaceuticals and Cerent.
"WTI has thrived by identifying business partners with strong business models that are unique and meaningful. Kabbage fits this classification perfectly," said David Wanek, Investment Partner with Western Technology Investment. "We're pleased to be able to help Kabbage expand its relationships with online merchants through this investment."
About Kabbage, Inc.
Kabbage, Inc., headquartered in Atlanta, Georgia, has pioneered the first financial services data, technology and marketing platform just for online merchants, supporting millions of small and medium businesses that make a living selling online. Kabbage leverages data generated through merchant activity across various marketplaces and channels to understand business performance and craft financing options that meet their needs. Kabbage is venture funded and backed by Mohr Davidow Ventures and BlueRun Ventures, with additional investors including: David Bonderman, founder of TPG Capital, Warren Stephens, CEO of Stephens Inc., and the UPS Strategic Enterprise Fund. For more information, please visit www.kabbage.com.
SOURCE Kabbage, Inc.