Kabbage, an online lender for small businesses, has fetched $700m in asset-backed securitisation (ABS) funding.
This marks the largest-ever securitisation by a small business-focussed online lender, Kabbage said.
Both new and existing institutional investors contributed to the transaction.
Using bulk of the fresh funds, the firm paid down an existing ABS transaction.
“The transaction also reduces the company’s cost of funds compared to its existing ABS by more than 100 basis points,” Kabbage noted.
With the securitisation, the company’s debt funding increases to $940m.
Kabbage assesses transactions and offers credit decision in minutes through automated underwriting models.
The platform is said to have lent more than $6.5bn to over 170,000 small businesses till date.
The firm is backed by the SoftBank Vision Fund, BlueRun Ventures, Mohr Davidow Ventures, among others.
Kabbage CFO Scott Rosenberg said: “The new ABS and AA rating is a testament to Kabbage’s proven and real-time approach to responsibly apply credit access to small businesses.
“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.”
In November 2017, Kabbage bagged a $200m asset-backed revolving credit facility from Credit Suisse.
Earlier that year, the online lender received a $250m equity investment from SoftBank.