NEW YORK, Nov. 1, 2022 /PRNewswire/ -- Today, Ampla Technologies announced the acquisition of Upside Financing, and the formation of a new product offering, Ampla Pay Later, an extended payment terms solution for brands and vendors across the supply chain.
Ampla Pay Later will build on Upsides' existing product, which extends payment terms for brands looking to preserve cash flow and pay on their own terms, and integrate it into Ampla's broader financial solutions platform.
Data shows that inventory is the biggest cash drain for any growing company, tying up nearly 40% of a consumer brand's capital. With this new product, customers will be able to upload invoices from manufacturers, and Ampla Pay Later will pay on their behalf. Brands will then make payments back on extended payment terms, typically ranging from 30 to 120 days. This product will help preserve capital and smooth volatile cash flows for brands and vendors alike.
"The acquisition of Upside, and the formation of Ampla Pay Later will provide brands with another lending option alongside our Growth Line of Credit that extends their runway and allows them to free up cash to grow," said Anthony Santomo, Founder and CEO of Ampla Technologies. He continued, "Despite significantly fewer deals getting done in the current macro environment, Ampla has decided to double down on its support of emerging consumer brands with its acquisition of Upside. Ampla remains committed to its mission of fueling the consumer brand ecosystem through good and bad times."
Addressing a Critical Pain Point for Brands
According to a 2017 study by US Bank, 82% of businesses under 40 MM in annual revenue fail due to poor cash flow management. A more recent CB Insights report indicated that almost 40% of all startups, regardless of revenue or size, fail for the same reason. Ampla Pay Later will address this critical issue head-on, helping brands extend payment terms and unlock cash flow in a cost-effective and flexible manner.
"Ampla Pay Later is the tool we needed as we scaled Kettle & Fire. We were unable to get terms from our manufacturers for years, which created volatility in our cash flows and constrained our liquidity." - Founder & CEO, Kettle and Fire
Building on Ampla's Momentum
The acquisition of Upside comes at a time when Ampla is rapidly accelerating its growth through its core product, the Growth Line of Credit, a non-dilutive working solution for consumer brands. That product recently surpassed over $850,000,000 in total funds deployed to customers this past September, with only 90 full-time employees.
With this acquisition, Ampla is poised for significant revenue acceleration, opening up a b2b buy now, pay later market that is estimated at more than 1 trillion dollars.
Brooke Kiley, Ampla investor from VMG Catalyst, shared, "With the acquisition of Upside Financing, Ampla demonstrates that they are continuing to innovate with the end customer in mind. We believe the combined product suite is uniquely positioned to service the next generation of consumer brands and support them through this increasingly volatile environment. As both companies share similar cultures and product visions, we are excited to see what the combined organization can accomplish."
Upside CEO, Nicholas Mares, stated, "We've been serving the b2b buy now pay later market for the last 18 months, and are proud of the momentum we've built in the space. Joining Ampla will help this product reach even more customers as well as give existing customers access to a broader suite of financial tools to manage and grow their business."
Mares will become a full-time employee of Ampla, and will help manage the Ampla Pay Later line of business. Existing Upside clients will face no business interruptions and will be able to enjoy a broader set of offerings from Ampla, including its hallmark Growth Line of Credit, Banking and Bill Pay and Insights and Analytics offerings.
Ampla Technologies is a tech-enabled financial platform offering consumer brands access to digital banking and working capital solutions. Ampla's signature product - the Growth Line of Credit - was designed to support omnichannel brands at scale. Alongside this product, Ampla offers embedded banking, bill pay, analytics, and credit card solutions. Founded in 2019, Ampla is based in NYC and has raised over $350 MM in funding to-date from top funds like VMG, Forerunner, M13, Infinity Ventures, and Core Innovation Capital including a 60 MM series A round in December 2021.
Upside Financing helps consumer brands improve their cashflow by unlocking extended payment terms within their supply chain. Upside's core product allows a company to buy inventory today and match the repayment to a Brand's cash conversion cycle. Upside works directly with a Brand's supply chain for ease of use and offers less restrictive access to capital compared to traditional lenders. Founded in 2021, Upside started in Austin TX and quickly grew into a fully remote organization. Upside raised $26 MM in funding led by M13 and Infinity Ventures.