Recruit and three financial services firms joined an investor base already including UPS and SoftBank, taking the lending marketplace's funding to $240m altogether.
US-based online lending marketplace Kabbage secured $135m at a $1bn valuation today in a series E round backed by investors including logistics firm UPS and human resources provider Recruit.
Reverence Capital Partners led the round, which also featured financial services firms Santander, which took part through its Santander InnoVentures unit, ING and Scotiabank, as well as Yuan Capital, BlueRun Ventures and Thomvest Ventures.
Recruit and UPS invested in the round through their respective investment subsidiaries, Recruit Strategic Partners and UPS Strategic Enterprise Fund.
Founded in 2009, Kabbage operates a lending platform for small businesses, utilising an automated assessment mechanism that takes into account information including accounting data, online sales and shipping figures to provide loans in minutes. It has also diversified into consumer lending.
The company, which claims its platform is responsible for more than $1bn of loans each year, raised the equity funding alongside a threefold expansion of its credit facility, financed by insurance firms, hedge funds, pension funds and investment managers, to more than $900m.
Rob Frohwein, Kabbage’s co-founder and CEO, told TechCrunch it has originally planned to raise between $75m and $80m in the round, but upsized it due to the level of interest and the chance to build partnerships with established banks in order to grow its business internationally.
Kabbage has now raised about $240m in equity funding altogether. The series E follows a May 2014 series D round backed by UPS Strategic Enterprise Fund, Thomvest, Bluerun, telecommunications firm SoftBank, TCW/Craton, Lumia Capital and Mohr Davidow Ventures, which raised $50m.
UPS is a long-term investor in Kabbage, having backed its $17m series B round in 2011 and a $30m series C that closed in 2012.
Rob Frohwein said in a statement today: “We are thrilled to announce our partnership with Reverence Capital Partners, ING, Santander InnoVentures, and Scotiabank, global leaders with deep expertise across financial services and technology.
“It is particularly gratifying to welcome three of the top 50 global banks to our shareholder base as we continue to expand our reach internationally, delivering an unparalleled experience to small businesses and consumers worldwide.”
