Financial technology company Kafene secured $75 million in additional debt and equity. The package included a $50 million credit facility from Credit Suisse, with an additional $10 million provided by Hudson Cove Capital Management. An additional $15 million was added to Kafene’s original Series A investment co-led by equity investors Valar Ventures and Third Prime, bringing the total to $30 million,
The $75 million in capital will allow Kafene to scale its retail footprint and expand delivery of its financing platform to U.S. consumers who have limited or no access to credit.
According to Kafene, nearly one-third of Americans have credit scores that limit their purchasing ability. Kafene’s financing platform allows consumers to access financing to purchase appliances, electronics, furniture and other goods at participating retailers across the United States. The company offers consumers interest-free BNPL (buy now pay later) options as well as lease-to-own options.
“We welcome this opportunity to work closely with Credit Suisse, Hudson Cove and our equity investors,” Neal Desai, co-founder and CEO at Kafene, said. “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.”
“Kafene has identified a huge market underserved by traditional lenders and has developed an innovative, cost-effective financing platform to serve it,” Fred Wang, partner and portfolio manager at Hudson Cove Capital Management, said. “We see strong upside for Kafene’s business and have confidence in the team to execute its vision.”
“The strength of Kafene’s management team, its innovative financing platform and strategic retail footprint offer a compelling business case for growth,” Wes Barton, managing partner at Third Prime, said. “The company is solving the seemingly intractable challenge of profitably serving the underbanked with affordable BNPL and flexible financing options while helping its users build better credit profiles.”
