Leena Rao is currently working as a writer for TechCrunch. She recently finished graduate school of the Medill School of journalism at Northwestern University, where she studied business journalism and videography. From 2004 to 2007 she helped lead efforts for advocacy and community relationships Congressman Carloyn Maloney in New York. She graduated from Columbia University in 2003 where it was ... ? Read More
Atlanta-based startup Kabbage, which provides for working capital for online merchants, has raised $ 17 million in series b financing, led by MOHR Davidow Ventures, BlueRun Ventures, David Bonderman, founder of TPG Capital; Warren Stevens, CEO of Stevens; UPS strategic Enterprise Fund, Jim McKelvey, co-founder of the square; and other participation in the round. This brings the total funding Kabbage to $ 24 million.
Kabbage, which was founded by Mark Gorlin, Rob Frohwein and Catherine Petralia, essentially a way for online merchants and vendors in the markets as eBay and Amaxon to get the capital that they would not otherwise qualify for a bank. Kabbage uses technology to analyze sales online sellers and credit history; client traffic and reviews; and prices and inventory, as compared with competitors. And merchants active, you can add information to their Kabbage account immediately increasing their access to capital.
Via PayPal Adaptive payments API, Kabbage will provide cash advances on eBay and other online Marketplace sellers quickly (Kabbage says that many transactions take as little ten minutes).
Gorlin tells me that many small businesses and online merchants are unable to obtain financing from traditional banks, and aimed to disrupt this space Kabbage, providing a painless way to help these sellers access cash.
Kabbage makes money from fees charged to merchants for the replenishment of working capital. Fees will depend on how long the online merchant is holding in the capital (maximum of 6 months) and client maturity risk. The stakes range from 6% to 16% of the initial amount in advance. Kabbage currently supports merchants on eBay, Amazon and Yahoo platform and plans to add support for sellers on Facebook, Etsy, Shopify, and Sears. currently, there are thousands of merchants using Kabbage and Gorlin to total volume Kabbage vendors plan to reach $ 3 billion next year.
In connection with the financing of Kabbage also announces that it has been granted United States Patent No. 7, 983, 951, entitled "instruments for liquidity provision in the online auction market," It covers essentially the system in which the capital provider uses information
with regard to the history of the merchant sales on the Web site of e-commerce, to make a decision on the granting of funds. For a company that just launched a few years ago, snagging a patent is impressive.
Gorlin said the new funding will be used to add additional sites, distribution of new financial products and for international expansion. He explains that there is huge potential for growth in international markets and run continuously to sellers outside of the United States who are interested in Kabbage for services.
Similar to credit card size mobile access for small businesses and that Greendot prepaid credit cards has covered, Kabbage brings working capital and small loans for online merchants who may not qualify for the cash infusion from a traditional bank. As mentioned above run has some potential to disrupt the market industry.
Kabbage provides financing options for online merchants. Kabbage provides funding for online merchants, using commonly available information from online marketplaces for risk assessment and help to determine in advance the amounts and related ...
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