Parafin raises $100m in Series C to boost Small Business Financial Services

By Gloria Mathias

Parafin, which builds embedded finance infrastructure, has announced the close of its $100 million Series C financing at a $750 million valuation.

Notable Capital led the financing, with Redpoint Ventures participating. Existing investors Ribbit Capital, Thrive Capital, and GIC also participated in the round.

This funding reflects growing confidence in Parafin’s approach to embedded financial services, an area that continues to transform how small businesses access capital and manage their operations.

Parafin’s infrastructure powers financial services for marketplaces, vertical SaaS, and payment platforms, including global leaders like Amazon, Walmart, DoorDash, TikTok, and Worldpay. With a single integration, platforms can launch a full suite of financial products for their small business sellers, including capital, spend management, and savings tools. These services provide access to financing and help businesses thrive by leveraging real-time performance data to offer customised financial solutions.

CEO and co-founder Sahill Poddar shared, “Since we launched Parafin, our mission has been to empower small businesses with financial services. Small businesses are the backbone of the American economy, yet banks do not have their backs. Incumbent methods systematically bias against women—and minority-owned businesses, which has historically hindered small business growth. At Parafin, we’ve worked tirelessly to construct our entire company—from our products and teams to our processes—to solve this problem.”

He added, “This new capital will allow us to scale existing products, ship new products, expand into new geographies, and deepen our partnerships with platforms that support the global small business economy.”

Hans Tung, Managing Partner at Notable Capital and a new board member of Parafin, said, “What immediately drew us to Parafin was their differentiated approach to solving small business financing at scale through strategic partnerships with the world’s largest platforms.”

“Parafin’s focus is clear: To grow small businesses via financial services on digital platforms they use every day. By embedding financial services directly into the platforms where businesses already operate, the company helps drive growth, loyalty, and retention for platforms while empowering small businesses to thrive,” said Vineet Goel, CPTO and co-founder. “As Parafin expands its reach, we’re excited to bring to life solutions that help small businesses not just access capital but also save, store, and spend money via the platforms they transact on.”