Online financing firm Kabbage raises funds ahead of UK launch

A Series C funding round for Kabbage has seen it net a further $30 million (£18.5 milion) of growth capital.

US-based Kabbage, which provides working capital for small businesses, has closed its third institutional funding round.

Its new investment, worth $30 million (£18.5 milion), will reportedly allow it to expand its partnerships and advance its technology and data platform.

Kabbage is planning on launching its service in the UK later in 2012 and has now received a total of $56 million in equity investments.

Its latest round is led by Thomvest Ventures, with further contributions coming from existing backers including the UPS Strategic Enterprise Fund and Mohr Davidow Ventures.

Rob Frohwin, CEO of Kabbage, comments, ‘Thomvest is committed to driving the growth of small businesses – as are we – making the firm a natural financing partner for Kabbage.

‘Thomvest has a deep understanding of the financial service industry and has become a recognised leader in the space through its support of the equity and debt requirements of Lending Club.’

Kabbage says since launching its platform two years ago it has ‘fuelled’ $800 million in annual sales for its small business customers. It says, on average, its customers take an average of ten advances a year to help growth.

Thomvest founder and managing partner Peter Thomson says that Kabbage has ‘completely’ redefined small business finance in less than two years.

He adds, ‘Its disruptive business model and technology platform is providing much needed working capital to small businesses quickly and efficiently, helping to drive the overall economy.’

Hunter Ruthven

Hunter Ruthven

Hunter was the Editor for from 2012 to 2014, before moving on to Caspian Media Ltd to be Editor of Real Business.

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