Sellers Financing secured $ 166.5 million in a combination of Series A equity financing and a line of credit to continue developing its technology and payment platforms for e-commerce businesses.
Northzone led the round and was joined by Endeavor Catalyst and Fasanara. SellersFunding CEO Ricardo Pero did not disclose the funding breakdown, but said the company previously raised two initial rounds totaling $ 40 million in equity and more than $ 100 million in lines of credit, including one that the company was expanding to $ 200 million.
SellersFunding, with offices in Florida, New York and London, created a digital platform that provides financial tools and resources to streamline global trading for thousands of markets, including working capital, cross-border cash management, tax solutions and valuation. business.
But he got the idea for the company after spending 20 years in the financial industry. He left JP Morgan in 2016 with the desire to start his own company. He was consulting a friend who was selling on Amazon, who asked him to help him understand Amazon fees and to review next year’s budget because the friend was struggling to keep up with growth.
“I helped him address the fees issue, but when I went to talk to traditional lenders, I found that they had no idea about e-commerce and the needs of SMEs,” he said.
In addition to being a source of loans for companies selling in these markets, SellersFunding leverages the sales data provided by the marketplaces and e-commerce platforms to create sales and cash flow estimates based on the credit limits granted to investors. customers so owners can better understand rates. they are paying and making more informed decisions.
He founded the company in 2017, and today he has over 30,000 registered users and is approaching the $ 10 billion in sales volume that is feeding data into SellersFunding’s daily models. The company makes money as a lender and from the fees it charges for payments collected by its customers. Merchants can collect money from the markets and pay their suppliers in local or foreign currency.
SellersFunding has consistently grown 300% year-over-year, Pero said. As such, he intends to use the new funding to scale globally, expand the team, create a marketing budget, and pursue two small acquisitions in the US and Europe.
The company will continue to invest on the payments side and promote cross-border payments.
“When I look at the payments landscape, companies are competing on prices and I don’t think we will ever focus there, but we will compete on the customer experience,” added Pero. “Our main business will always be loans and our main investments will be payments and technology, but then we will expand to other services that our clients want.”
With a view to expanding internationally, Northzone should be added as a partner, he added. The venture firm is based in Europe and had a similar vision for thinking globally.
Jeppe Zink, General Partner at Northzone, said by email that Pero and his team “are the most experienced in this category” and are building a category leader that has “more experience and understanding of the loan side than their competitors.”
“We’ve seen this massive increase in e-shopping, most of the new ones are coming from marketplaces like Amazon and Shopify, and if you look at the sellers, thousands are small businesses sourcing their products, which means they are very important customers.” Zink added. “Normal banks like Barclay cannot verify credit. SellersFinding is helping small businesses get this credit, and for good reason. In the same way that we think that the neobanks have gained from the accounts created when it comes to delivering banking and credit products, they are still nowhere to be found. “