Fintech infrastructure startup Parafin secures $125m warehouse facility from SVB and Trinity Capital

Fintech infrastructure startup Parafin secures $125m warehouse facility from SVB and Trinity Capital

Published: 12-04-2024 11:58:00 | By: Pie Kamau | hits: 1573 | Tags:

Silicon Valley Bank (SVB), a division of First Citizens Bank, along with lending partner Trinity Capital (Trinity), announced it has provided a $125 million warehouse facility to fintech infrastructure startup, Parafin. Recently named to the 2024 Fintech Innovation 50, Parafin helps companies, such as marketplaces, vertical SaaS, and payment processors, launch and embed financial services for their sellers.

Provided by SVB's national fintech practice, the financing facility will support Parafin in providing capital to businesses on premier platforms such as DoorDash and Amazon. Parafin employs a machine learning-based underwriting model based on sales performance to determine eligibility and create personalized financing offers. Since Parafin's launch in 2020, it has served tens of thousands of businesses and extended $5 billion in offers.

Sahill Poddar, CEO of Parafin: "Small businesses often face barriers to financing. Parafin's goal is to help them overcome those challenges, and get them the capital they need. We're thrilled to partner with SVB and Trinity, which will expand our financial service offerings and capacity to supply sellers with fast and flexible financing to scale their businesses."

Steven Lambe, Managing Director, Warehouse Lending, Trinity Capital: "We're proud to partner with the teams at Parafin and SVB to provide this warehouse financing facility. Parafin's impressive financing platform will continue to empower small and medium sized businesses with flexible capital solutions."

As a leader in serving the fintech industry, SVB provides fintech clients with specialized banking services, specialty financing and payment solutions including venture debt, warehouse lending, payment processing, and APIs.

Brian Foley, Market Manager, SVB: "Parafin is helping sellers, creators, and entrepreneurs bridge their cash flow needs, invest in their growth, and focus on what they do best: running their business. SVB is proud to continue our strong relationship with Parafin and provide them with the financial solutions and advice they need to grow and help more business owners."