POS financing Fintech Kafene has secured $75 million in additional debt and equity to accelerate company growth. The package included a $50 million credit facility from Credit Suisse, with an additional $10 million provided by Hudson Cove Capital Management, an alternative credit asset manager. An additional $15 million was added to the platform’s original Series A investment, bringing the total to $30 million, co-led by equity investors Valar Ventures and Third Prime. The $75 million in capital allows Kafene to scale its retail footprint and significantly expand the delivery of its financing platform.
Roughly one-third of Americans have credit scores that limit their purchasing ability. The financing platform allows consumers to access financing to purchase appliances, electronics, furniture, and other goods at participating retailers across the U.S. The company offers consumers interest-free BNPL (buy now, pay later) options and flexible lease-to-own options, both of which can help Kafene’s users improve their credit scores.
“We welcome this opportunity to work closely with Credit Suisse, Hudson Cove, and our equity investors,” said Neal Desai, co-founder and CEO of Kafene. “The ability to secure debt financing and equity investment underscores the stability and trajectory of our business. This additional capital will help drive the next phase of our growth strategy.”
“Kafene has identified a huge market underserved by traditional lenders and has developed an innovative, cost-effective financing platform to serve it,” added Fred Wang, partner and portfolio manager, Hudson Cove Capital Management. “We see strong upside for Kafene’s business and have confidence in the team to execute its vision.”
“The strength of Kafene’s management team, its innovative financing platform, and strategic retail footprint offer a compelling business case for growth,” said Wes Barton, managing partner, Third Prime. “The company is solving the seemingly intractable challenge of profitably serving the underbanked with affordable BNPL and flexible financing options while helping its users build better credit profiles.”