Parafin, a Fintech firm that’s being led by ex- Robinhood Markets Inc. professionals, has acquired $60 million in funding as part of its second investment round.
Established in 2020 by Ralph Furman, Sahill Poddar, and Vineet Goel, Parafin works cooperatively with firms like DoorDash Inc. and Mindbody to develop their financing units, with a focus on lending to SMBs.
Goel noted in a recent interview:
“As we started the company during the pandemic, we noticed small businesses weren’t getting the help they needed. We want to be the one-stop shop to enable these platforms to offer a variety of financial products.”
Notable investors in Parafin reportedly include Robinhood CEO Vlad Tenev, Robinhood co-founder Baiju Bhatt, DoorDash co-founder Stanley Tang, Chime co-founder and CEO Ryan King and SV Angel.
Parafin’s management noted that they have now acquired a debt facility of around $150 million from Atalaya Capital Management, as well as Jefferies Financial Group Inc.
GIC Pte, Singapore’s sovereign wealth fund has reportedly led the funding round. GIC joined current investors – which include Thrive and Ribbit Capital to value the firm at $520 million, and bring the company’s total equity funding to $94 million, Bloomberg reported.
As the firm reported in September 2021, they had officially announced Parafin, a company designed “to power the next generation of financial services for more than 200 million small businesses around the world.”
Having dedicated the last year to building infrastructure to serve several of the world’s largest platforms and their sellers, they were thrilled to share (in September of last year) that they’ve so far “raised $34 million in seed and series A financing, led by Ribbit Capital and Thrive Capital.”
They added that the’re proud to introduce as Parafin investors SV Angel, Hans Tung, Plaid CEO Zach Perret, DoorDash Co-Founder and CPO Stanley Tang, Robinhood CEO Vlad Tenev, Robinhood Co-founder Baiju Bhatt, Chime Co-founder and CTO Ryan King, Carta CEO Henry Ward, and Jaren Glover of Robinhood, and to welcome Nick Shalek and Gaurav Ahuja to the Parafin board.
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