Embedded finance infrastructure provider Parafin has raised $100m in a Series C funding round, valuing the company at $750m.
The financing round was led by Notable Capital, with participation from Redpoint Ventures and Parafin’s existing investors, including Ribbit Capital, Thrive Capital, and GIC.
According to Parafin, the funding highlights investor confidence in its approach to embedded financial services.
Since its Series B round in September 2022, Parafin has achieved a 400% growth in transaction volumes. The company now funds nearly $1bn annually for tens of thousands of small businesses across the US and Canada.
Parafin expects to achieve profitability within the next six months.
Parafin CEO and co-founder Sahill Poddar said: “At Parafin, we’ve worked tirelessly to construct our entire company — from our products and teams to our processes — to solve this problem.
“For example, our machine learning-based risk models train on millions of small business performance data to determine eligibility, offers, and pricing as opposed to relying on credit scores or requiring personal guarantees.
“Deploying state-of-the-art models enables us to provide responsible and sustainable access to hundreds of thousands of small businesses.”
Established in 2020, Parafin’s technology powers financial services for platforms, vertical software-as-a-service (SaaS), and payment platforms, including Amazon, DoorDash, TikTok, Walmart, and Worldpay.
Through a single integration, these platforms can offer small business sellers a range of financial products such as capital funding, spend management, and savings tools.
By leveraging real-time performance data, Parafin’s infrastructure enables tailored financial solutions for businesses to grow and succeed.
Parafin has supported over $8bn in financing offers in less than three years.
Its platform simplifies capital markets, underwriting, servicing, compliance, and customer support, enabling marketplaces, SaaS platforms, and payment processors to embed financial services without added complexity.
In its Series B funding round led by GIC, Parafin secured $60m, which brought its total equity funding to $94m at that time.
