Pipe secures new $100m credit facility from Victory Park Capital
Pipe, the San Francisco-headquartered capital platform, has bagged a new $100 million credit facility with Victory Park Capital (VPC).
Pipe lands new $100 million credit facility with VPC
The facility, which “has the potential to upsize up to $200 million in the future”, has been earmarked to support Pipe’s recently launched embedded Capital-as-a-Service solution for small and medium-sized businesses (SMBs).
In particular, Pipe says its new offering aims to service payment firms and vertically integrated software vendors.
Founded in 2019, Pipe’s APIs and infrastructure enables partners to embed its capital solution “into their own ecosystem”, resulting in an enhanced merchant experience and “monetising payments in a mutually beneficial way”.
In addition, the facility will enable the company to “expand our existing capacity to more than $1 billion per year in originations for SMBs,” states Luke Voiles, CEO of Pipe.
Commenting on the firm’s investment in Pipe, Tom Welch, partner at VPC, explains that the two companies “share a similar mission” of providing capital solutions to enterprises that have previously been “overlooked by traditional sources of financing”.
The announcement of Pipe’s new facility follows the lendtech’s leadership hiring spree last year. In an effort to build a “fintech dream team“, as Voiles described, the company brought on Manpreet Dhot as chief risk officer, Scott Polchleb as chief innovation officer, and Namrata Ganatra as chief product and technology officer.
