Parafin, which builds embedded finance infrastructure, announced the close of its $100 million Series C at a $750 million valuation.
The financing has reportedly been led by Notable Capital with participation from Redpoint Ventures.
Existing investors Ribbit Capital, Thrive Capital, and GIC also took part in the latest investment round.
This funding reflects confidence in Parafin’s approach to embedded financial services, an area that transforms how SMBs gain access to capital and manage their day-to-day operations.
Parafin has seen a solid trajectory, funding almost $1 billion annually for small businesses operating in the United States as well as Canada.
Since its Series B in Sept 2022, the firm reports that it has grown volumes by 400% and expects to “reach profitability within six months.”
Parafin’s infrastructure powers financial services for marketplaces, vertical SaaS, and payment platforms, including global firms such as Amazon, Walmart, DoorDash, TikTok, and Worldpay.
With a single integration, platforms are able to launch a suite of financial products for their small business sellers, including “capital, spend management, and savings tools.”
These services provide access to financing and help businesses succeed by leveraging real-time performance data to “offer customized financial solutions.”
CEO and co-founder Sahill Poddar shared:
“Since we launched Parafin, our mission has been to empower small businesses with financial services. Small businesses are the backbone of the American economy yet banks do not have their backs. Incumbent methods systematically bias against women- and minority-owned businesses. This has historically hindered small business growth. At Parafin, we’ve worked tirelessly to construct our entire company — from our products and teams to our processes — to solve this problem.”
He added,
“This new capital will allow us to scale existing products, ship new products, expand into new geographies, and deepen our partnerships with platforms that support the global small business economy.”
Hans Tung, Managing Partner at Notable Capital and a new board member of Parafin, commented,
“What immediately drew us to Parafin was their differentiated approach to solving small business financing at scale through strategic partnerships with the world’s largest platforms.”
Vineet Goel, CPTO and co-founder said:
“Parafin’s focus is clear: To grow small businesses via financial services on digital platforms they use everyday. By embedding financial services directly into the platforms where businesses already operate, the company helps drive growth, loyalty, and retention for platforms while empowering small businesses to thrive.”
As mentioned in the announcement, Parafin is a financial infrastructure company that provides platforms with embedded financial products for their small businesses by “abstracting the complexity of capital markets, underwriting, servicing, compliance, and customer support.”
By powering the financial services of marketplaces and payment processors, small businesses can run and grow themselves “despite uncertain economic conditions.”
As noted in the update, Parafin has launched on Amazon, Walmart, Worldpay, and more platforms to serve businesses and extended “over $8 billion in offers.”
Parafin was founded back in 2020 by Sahill Poddar, Vineet Goel, and Ralph Furman, and is reportedly backed by the following: GIC, Notable Capital, Redpoint Ventures, Ribbit Capital, and Thrive Capital.