Key Takeaways
- • Parafin, an embedded financial infrastructure company, closed a $300 million forward-flow agreement backed by a top New York-based alternative asset manager, under which up to $300 million of loans originated through its platform would be purchased into a rated vehicle.
- • The deal is Parafin's second forward-flow agreement, following a $360 million agreement with Cross River Bank.
- • The financing expands Parafin's long-term funding capacity, building on recently announced partnerships with Goldman Sachs and EverBank and a renewed commitment from First Citizens.
- • Parafin has surpassed 50,000 unique businesses funded across three products: working capital, BNPL, and credit card.
Summary
Parafin, a San Francisco-based embedded financial infrastructure company, announced a new forward-flow agreement backed by a top New York-based alternative asset manager, according to a Business Wire release. Under the agreement, up to $300 million of loans would be originated through Parafin's platform and purchased into a rated vehicle. The company did not name the asset manager in the announcement.
The agreement is Parafin's second forward-flow deal, following its $360 million agreement with Cross River Bank. The company said the facility expands its long-term funding capacity and provides additional capital to support growth and its ability to fund across platform partners. The announcement builds on recently announced partnerships with Goldman Sachs and EverBank, along with a renewed commitment from First Citizens.
The milestone comes as Parafin surpasses 50,000 unique businesses funded. Its three products, working capital, BNPL, and credit card, serve small businesses across its platform partners. Parafin states that it powers financial services for platforms including Amazon, Walmart, DoorDash, and Gusto, abstracting the complexity of capital markets, underwriting, servicing, compliance, and customer support for marketplaces, vertical SaaS platforms, and payment processors.
CEO and co-founder Sahill Poddar said the agreement "demonstrates the strong credit quality of Parafin assets" and gives the company "additional capacity to scale responsibly." Parafin was founded in 2020 by Sahill Poddar, Vineet Goel, and Ralph Furman, and is backed by Ribbit Capital, Thrive Capital, GIC, Notable Capital, and Redpoint Ventures.
The agreement is Parafin's second forward-flow deal, following its $360 million agreement with Cross River Bank. The company said the facility expands its long-term funding capacity and provides additional capital to support growth and its ability to fund across platform partners. The announcement builds on recently announced partnerships with Goldman Sachs and EverBank, along with a renewed commitment from First Citizens.
The milestone comes as Parafin surpasses 50,000 unique businesses funded. Its three products, working capital, BNPL, and credit card, serve small businesses across its platform partners. Parafin states that it powers financial services for platforms including Amazon, Walmart, DoorDash, and Gusto, abstracting the complexity of capital markets, underwriting, servicing, compliance, and customer support for marketplaces, vertical SaaS platforms, and payment processors.
CEO and co-founder Sahill Poddar said the agreement "demonstrates the strong credit quality of Parafin assets" and gives the company "additional capacity to scale responsibly." Parafin was founded in 2020 by Sahill Poddar, Vineet Goel, and Ralph Furman, and is backed by Ribbit Capital, Thrive Capital, GIC, Notable Capital, and Redpoint Ventures.
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