Parafin raises $60m, bringing its total equity funding to $94m

By Edlyn Cardoza

Parafin is a FinTech infrastructure startup that marketplaces, vertical SaaS, and payment processors rely on to launch and embed financial services for their sellers, announced that it has raised a $60 million Series B financing round led by GIC, bringing its total equity funding to $94 million. This round includes participation from new and existing investors, including Series A and Seed lead investors Thrive Capital and Ribbit Capital.

Parafin powers the embedded capital offerings of companies with over $100 billion in payments volume, including DoorDash Capital and Mindbody Capital. Companies that use Parafin together serve over 700,000 small and medium-sized businesses around the world.

“Small businesses have a huge, unmet need for capital and are poorly served by the status quo,” said Vineet Goel, co-founder of Parafin. “We make it simple, seamless, and fast for any Platform that serves a small business to offer financial products that accelerate their small business’ growth and increase their loyalty and lifetime value.”

Because Parafin is a vertically integrated, full-stack offering that manages everything from product, underwriting, capital markets, compliance, and marketing for its partners, companies that serve small businesses can launch a white-labelled financial services program with Parafin in a few days.

Small businesses can accept capital in a few clicks, ensuring they can get the support they need while continuing to focus on running their business. In recent surveys, more than 90% of small businesses say their perception of the platform they use has improved since launching a Parafin-powered capital program.

With its new capital, Parafin intends to continue to launch new, innovative products for small businesses, such as business charge cards, and further establish its market leadership in embedded financial services.

“Most platforms fail to recognize both how much untapped demand their Sellers have for capital and how hard it is to build these financial products in-house,” said Sanyam Satia, Engineering Lead at Parafin. “We’re focused on solving hard infrastructure problems so that Platforms can best serve their Sellers.”