Parafin, a leading innovator in embedded finance, closed a $93M debt facility with Jefferies and Trinity Capital. Their investment has the potential to increase to $187M. The substantial funding from Jefferies and Trinity, both known for their strategic investments in pioneering technologies, will support Parafin’s ability to offer capital to small businesses. Earlier this year, Parafin secured $125 million from Silicon Valley Bank and Trinity Capital Inc.

Parafin enables platforms such as marketplaces, vertical SaaS, and payment processors with embedded financial services for their small business sellers. In under three years, Parafin has partnered with Amazon, Walmart, DoorDash, and Worldpay to offer financing to hundreds of thousands of small businesses. The financial infrastructure company uses machine learning to develop their unique, robust underwriting model that includes over a billion data inputs from every industry vertical.

Sahill Poddar, CEO and co-founder of Parafin, shared, “Our goal is to solve small business financial services at scale. We do so by seamlessly integrating our products on platforms that small businesses use to run their operations. This new funding reflects the confidence that Jefferies and Trinity have in our vision and our ability to innovate within the financial services space.”

This investment is not just a financial boost but a strategic reinforcement of Parafin’s mission to help grow the business economy.

“We are pleased to expand our partnership with Parafin, supporting their growth as they scale operations,” said Steven Lambe, Managing Director, Warehouse Lending at Trinity Capital. “This also marks our first formal partnership with Jefferies reflecting our intention to collaborate with leading financial institutions to provide ABL facilities for innovative companies.”

“Jefferies is proud to continue a relationship with Parafin that began in 2021,” said Michael Wade, Managing Director, Securitized Markets Group, Jefferies. “From the outset of our relationship, Parafin has experienced continuous growth and success with a world class management team. We look forward to continued success with Parafin as they grow.”