Capchase, a business that supplies non-dilutive capital to other businesses that have a recurring revenue but need funds for expenses, has announced that it has raised $280 million in new debt and equity financing.
This round of investments was led by i80 Group which was joined by other investors as well. This follows the $125 million that the company had managed to raise in June and it shows that the company is one of the prime targets of major investors. It has operations and clients in both the US and Europe as well and it has been financing businesses on both continents.
Miguel Fernandez, co-founder, and CEO of Capchase said: “Our new expense financing solution is a first in the industry, and we believe it will be a game-changer. Since we launched just over a year ago, we’ve seen firsthand the challenges that companies face when securing the financing they need to grow their business. Managing large expenses and having to make difficult decisions over how they spend their cash is one of the most consistent and trying issues that our clients face. There’s also a great opportunity to reduce costs by making use of the upfront discounts that vendors provide. Now Capchase users can pay upfront with Capchase, get a discount, and pay Capchase monthly over the following months.”
Currently, the company is lives in Europe and mainly in Spain but the company hopes to expand quickly into other parts of Europe in the coming months. As can be seen, this business model is very capital intensive but is much needed in the business circles as well and hence it is expected that it would have good demand globally. It has launched a new BNPL product for businesses that have large expenses. Such businesses would be able to take the funds from Capchase to pay off the expenses and then they can repay Capchase in 3 or 6 or 9 or 12-month instalments.
He said: “We’re not limited to just monthly or quarterly subscriptions, we can work with any revenue. We apply intelligence to it and work with customers. It’s not just the ability to pull forward revenues to find the growth, but also what is the implied schedule to achieve a business goal.”
The company has so far helped over 500 businesses with its financing model and it would hope to continue this momentum for the rest of 2021 and beyond.