Kabbage, a billion-dollar start-up that has become a key lender for small businesses in the United States, announced Thursday that it has raised $250 million in venture capital from SoftBank Group. The funding brings Kabbage's total equity funding raised to nearly $500 million.
With this investment, Kabbage — a company that combines machine-learning algorithms, data from public profiles on the internet and other factors to rate and then loan small businesses money — will expand its lending products and services. It will also use the capital to accelerate its SaaS platform that powers online SMB lending for global banks and expand into more overseas markets in Europe and Asia. Currently, the company is in Spain, the U.K., Canada and Mexico.
Founded during the financial crisis by Rob Frohwein, Marc Gorlin and Kathryn Petralia, friends who had experience with technology and start-ups, the Atlanta-based company has disrupted the online lending market by providing fully automated funding to small businesses in just minutes.