Parafin secures $125m warehouse facility from Silicon Valley Bank & Trinity Capital

By Delisha Fernandes

Parafin, a FinTech infrastructure startup, has raised $125 million warehouse facility from Silicon Valley Bank and Trinity Capital Inc. (“Trinity”).

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.

Sahill Poddar, CEO of Parafin, said, “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.”

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

“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,” said Brian Foley, Market Manager for SVB’s Warehouse and Fintech group. “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.”

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