Parafin Closes $93M Debt Facility with Jefferies and Trinity Capital Inc.

August 28, 2024 at 13:39 PM EDT

Parafin, a leading innovator in embedded finance, announced today that it closed a $93M debt facility with Jefferies and Trinity Capital Inc. Their investment has the potential to increase to $187M. The substantial funding from Jefferies and Trinity, both known for their strategic investments in pioneering technologies, will support Parafin’s ability to offer capital to small businesses. Earlier this year, Parafin secured $125 million from Silicon Valley Bank and Trinity Capital Inc.

Parafin enables platforms such as marketplaces, vertical SaaS, and payment processors with embedded financial services for their small business sellers. In under three years, Parafin has partnered with Amazon, Walmart, DoorDash, and Worldpay to offer financing to hundreds of thousands of small businesses. The financial infrastructure company uses machine learning to develop their unique, robust underwriting model that includes over a billion data inputs from every industry vertical.

Sahill Poddar, CEO and co-founder of Parafin, shared, “Our goal is to solve small business financial services at scale. We do so by seamlessly integrating our products on platforms that small businesses use to run their operations. This new funding reflects the confidence that Jefferies and Trinity have in our vision and our ability to innovate within the financial services space.”

This investment is not just a financial boost but a strategic reinforcement of Parafin’s mission to help grow the business economy.

“We are pleased to expand our partnership with Parafin, supporting their growth as they scale operations,” said Steven Lambe, Managing Director, Warehouse Lending at Trinity Capital. “This also marks our first formal partnership with Jefferies reflecting our intention to collaborate with leading financial institutions to provide ABL facilities for innovative companies.”

“Jefferies is proud to continue a relationship with Parafin that began in 2021,” said Michael Wade, Managing Director, Securitized Markets Group, Jefferies. “From the outset of our relationship, Parafin has experienced continuous growth and success with a world class management team. We look forward to continued success with Parafin as they grow.”

For more information about Parafin, please visit parafin.com or contact media@parafin.com.

About Parafin

Parafin is a financial infrastructure company that provides platforms with embedded financial products for their small business sellers by abstracting the complexity of capital markets, underwriting, servicing, compliance and customer support. By powering the financial services of marketplaces and payment processors, small businesses are able to run and grow themselves despite uncertain economic conditions. In less than three years, Parafin has partnered with Amazon, DoorDash, Walmart, TikTok, Worldpay, and more platforms to serve hundreds of thousands of businesses and extended over $8 billion in offers. Parafin was founded in 2020 by Sahill Poddar, Ralph Furman, and Vineet Goel and is backed by Ribbit Capital, Thrive Capital, and GIC.

About Trinity Capital Inc.

Trinity Capital Inc. (Nasdaq: TRIN), an internally managed business development company, is a leading provider of diversified financial solutions to growth-stage companies with institutional equity investors. Trinity Capital's investment objective is to generate current income and, to a lesser extent, capital appreciation through investments, including term loans and equipment financings and equity-related investments. Trinity Capital believes it is one of only a select group of specialty lenders that has the depth of knowledge, experience and track record in lending to growth stage companies. For more information, please visit the Company's website at www.trinitycap.com.

About Jefferies

Jefferies is a leading global, full-service investment banking and capital markets firm that provides advisory, sales and trading, research and wealth and asset management services. With more than 47 offices in 21 countries around the world, we offer insights and expertise to investors, companies and governments.