FinTech company Kafene has scored $75m in debt and equity funding as it looks to scale its market footprint across the US.
The company secured the financing through a $50m credit facility from Credit Suisse, $10m from Hudson Cove Capital Management as well as $15m from a Series A funding round backed by Valar Ventures and Third Prime.
Established in 2019, Kafene aims to promote financial inclusion by helping consumers with low credit scores. The company is focused on helping consumers with credit scores below 650 purchase retail items including electronics and appliances through its buy now, pay later model, as well as providing flexible lease-to-own options.
According to Kafene, the combined funding allows it to scale its retail footprint and significantly expand delivery of its financing platform to the over 100 million under-banked US consumers who have reduced access to credit for often key purchases.
Kafene CEO and co-founder Neal Desai said, “We welcome this opportunity to work closely with Credit Suisse, Hudson Cove, and our equity investors. The ability to secure debt financing and equity investment underscores the stability and trajectory of our business. This additional capital will help drive the next phase of our growth strategy.”
Hudson Cove partner and portfolio manager Fred Wang added, “Kafene has identified a huge market underserved by traditional lenders and has developed an innovative, cost-effective financing platform to serve it. We see strong upside for Kafene’s business and have confidence in the team to execute its vision.”
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