Parafin, a fintech infrastructure firm focused on SMBs, has received $60m in a Series B round, taking its total equity capital to $94m.
Singapore’s sovereign wealth fund GIC led the round. A number of new and current investors such as Thrive Capital and Ribbit Capital also took part in the fundraising.
Parafin aims to use the fresh infusion to reinforce its position as a provider of embedded financial services.
It also plans to introduce new tools for small businesses, including business charge cards.
The company primarily provides embedded capital solutions to entities, which handle payments worth more than $100bn. DoorDash Capital and Mindbody Capital are among the companies that receive services from Parafin.
Currently, users of Parafin solutions support more than 700,000 SMBs worldwide, stated the company.
In the second quarter of this year, Parafin reported an 87% increase in run-rate revenue and a 77% growth in overall funding volume.
Parafin co-founder Vineet Goel said: “Small businesses have a huge, unmet need for capital and are poorly served by the status quo.
“We make it simple, seamless, and fast for any Platform that serves a small business to offer financial products that accelerate their small business’ growth and increase their loyalty and lifetime value.”
Parafin’s existing suite of solutions include a vertically integrated, full-stack platform that oversees multiple aspects starting from product, underwriting, capital markets, compliance as well as marketing for its associates.
Using these solutions, companies serving small businesses can offer white-labelled financial services schemes within a short period.
Parafin-powered solutions allow small businesses to accept funds by completing small steps without hampering their day-to-day activities.
Various recent surveys have revealed that over 90% of small businesses have received better results on the platform they use after incorporating a Parafin-powered capital scheme, stated the company.
In September last year, Parafin raked in $34m in seed and Series A funding round.
The round was led by Ribbit Capital and Thrive Capital. Parafin is also backed by SV Angel, Hans Tung, Plaid CEO Zach Perret, DoorDash co-founder and CPO Stanley Tang, Robinhood CEO Vlad Tenev, among others.