Kabbage Inc., an online provider of working capital to online merchants, announced Tuesday that it raised $30 million in Series C financing.
The Atlanta-based company said it plans to use the funding to further advance its technology and data platform, expand partnerships, and to continue its growth as a small business finance company.
The funding could potentially help to expand partnerships with credit unions as well as larger banks, Kabbage told Credit Union Times.
In September 2011, the company launched its Social Klimbing program to connect Kabbage account holders to existing or new Facebook fan pages and Twitter feeds, which are analyzed and translated into additional capital, the company said. As merchants increase followers, activities and chatter on Twitter and Facebook, they gain access to more funds.
Small businesses that use Social Klimbing receive a merchant cash advance called a Kabbage Advance. There is no interest paid on the advance and businesses do not pay a prepayment penalty, according to the company. However, there is a fee based on how long a business keeps the capital, which can range from one to six months.
Since launching its platform two years ago, Kabbage said it now fuels over $800 million in annual sales for its small business customers, who take on average, 10 advances per year to help them grow.
Marc Gorlin, Kabbage co-founder and chairman, has said the company is open to working with credit unions and that many of the company’s customers have relationships with the cooperatives.
Through a series of investors, Kabbage said it has received a total of $56 million in equity to date.