Parafin Secures USD 100Mn in Series C Funding at USD 750Mn Valuation Since its Series B round in September 2022, Parafin has seen a 400 per cent increase in volumes and now funds nearly USD 1 billion annually for tens of thousands of small businesses in the U.S. and Canada
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Parafin, co-founded by Sahill Poddar and Vineet Goel, which builds embedded financial services for small businesses, has raised USD 100 million in Series C financing, bringing its valuation to USD 750 million. The funding round was led by Notable Capital, with participation from Redpoint Ventures and existing investors Ribbit Capital, Thrive Capital, and GIC.
This latest round marks a significant milestone for the company as it continues to revolutionize how small businesses access capital and manage their finances.
The company provides financial services for major marketplaces and platforms, including Amazon, Walmart, DoorDash, TikTok, and Worldpay. With a single integration, these platforms can provide small business sellers with a full suite of financial products, such as capital, spend management, and savings tools.
These services leverage real-time performance data to offer customized financial solutions, enabling businesses to thrive.
Since its Series B round in September 2022, Parafin has seen a 400 per cent increase in volumes and now funds nearly USD 1 billion annually for tens of thousands of small businesses in the U.S. and Canada.
The company is on track to reach profitability within six months, Sahill Poddar, CEO and co-founder emphasized that Parafin's mission is to empower small businesses, particularly those that have been historically underserved by traditional banks. The company's machine learning-based risk models analyze millions of data points on small business performance, eliminating the reliance on credit scores or personal guarantees. This approach ensures responsible and equitable financing for small businesses.
"Deploying state-of-the-art models enables us to provide responsible and sustainable access to hundreds of thousands of small businesses," Poddar added.
Vineet Goel, co-founder and CPTO, highlighted that Parafin's unique model integrates financial services directly into platforms where businesses already operate, driving growth, loyalty, and retention for these platforms while supporting small business expansion.
"Today, a small business such as a restaurant on DoorDash can get access to financing to grow their operations. As Parafin expands its reach, we're excited to bring to life solutions that help small businesses not just access capital but also save, store, and spend money via the platforms they transact on," Goel added.
