Ampla Technologies acquires Upside Financing; forms new product Ampla Pay Later
By Edlyn Cardoza
Ampla Technologies announced the acquisition of Upside Financing and the formation of a new product offering, Ampla Pay Later, an extended payment terms solution for brands and vendors across the supply chain.
Ampla Pay Later will build on Upsides’ existing product, which extends payment terms for brands looking to preserve cash flow and pay on their own terms and integrate it into Ampla’s broader financial solutions platform.
Data shows that inventory is the biggest cash drain for any growing company, tying up nearly 40% of a consumer brand’s capital. This new product allows customers to upload invoices from manufacturers, and Ampla Pay Later will pay on their behalf. Brands will then pay back on extended payment terms, typically from 30 to 120 days. This product will help preserve capital and smooth volatile cash flows for brands and vendors.
“The acquisition of Upside, and the formation of Ampla Pay Later will provide brands with another lending option alongside our Growth Line of Credit that extends their runway and allows them to free up cash to grow,” said Anthony Santomo, Founder and CEO of Ampla Technologies. “Despite significantly fewer deals getting done in the current macro environment, Ampla has decided to double down on its support of emerging consumer brands with its acquisition of Upside. Ampla remains committed to its mission of fueling the consumer brand ecosystem through good and bad times.”
According to a 2017 study by US Bank, 82% of businesses under 40 MM in annual revenue fail due to poor cash flow management. A recent CB Insights report indicated that almost 40% of all startups, regardless of revenue or size, fail for the same reason. The new product will address this critical issue head-on, helping brands extend payment terms and unlock cash flow cost-effectively and flexibly.
The acquisition of Upside comes at a time when Ampla is rapidly accelerating its growth through its core product, the Growth Line of Credit, a non-dilutive working solution for consumer brands. That product recently surpassed over $850,000,000 in total funds deployed to customers this past September, with only 90 full-time employees. With this acquisition, Ampla is poised for significant revenue acceleration, opening up a B2B buy now, pay later market estimated at more than 1 trillion dollars.
Upside’s CEO, Nicholas Mares, stated, “We’ve been serving the b2b buy now pay later market for the last 18 months, and are proud of the momentum we’ve built in the space. Joining Ampla will help this product reach even more customers as well as give existing customers access to a broader suite of financial tools to manage and grow their business.”
Mares will become a full-time employee of Ampla and help manage the Ampla Pay Later line of business. Existing Upside clients will face no business interruptions and will be able to enjoy a broader set of offerings from Ampla, including its hallmark Growth Line of Credit, Banking and Bill Pay and Insights and Analytics offerings.
IBSi Daily News Analysis
June 02, 2023
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