The landmark deal with specialist fintech investor, Fasanara Capital, commits £100M immediately and a further £200M on expansion to China; it will be deployed by Storfund to reach its target of £5 billion in annual financing for ecommerce retailers by 2024
LONDON–(BUSINESS WIRE)–Ecommerce is growing at blistering pace, hitting £3 trillion worldwide in 20201. But despite its size, fast growth and the potential value of the sector to financial services firms, ecommerce has simply developed too quickly for banking technology to keep pace.
The transaction led by Fasanara Capital includes a warehouse line of £100 million in committed funds, and is extendable to £300 million. It will enable Storfund to meet ecommerce retailers’ intense demand for cashflow services, particularly in China where Storfund is piloting its service this autumn.
The deal represents a mega-raise for the start-up, which secured £26.5 million, led by Union Bancaire Privée (UBP), in its last funding round in February.
The potential impact is significant given Storfund’s unique global reach. It already offers its services to ecommerce retailers in North America and Europe; and this new deal will underpin the expansion of its service to Latin America and Asia Pacific based ecommerce retailers.
Storfund is Amazon’s only approved global provider of factoring – immediate payment on sales – delivering its service in 17 out of Amazon’s 20 marketplaces and has a fast-growing footprint of marketplace partnerships across Europe.
Almost 50% of online purchases worldwide are made on marketplaces2 but retailers grapple with exceptionally long cash cycles, as marketplaces hold back consumer payments to facilitate returns and refunds. The investment will be deployed by Storfund to increase cashflow to retailers, bridging the gap between sale and payment.
Marketplaces integrating with Storfund can offer their retailers better payment terms – a key factor for retailers when deciding where to expand in the ever-increasing competitive marketplace landscape. Storfund supports retailer growth by enabling them to restock faster and build their product catalogues, which in turn translates into growth for the marketplace. Storfund has a fast-growing pipeline of marketplaces working to integrate their service.
“From the earliest conversations with Fasanara, it was clear they saw the scale of the opportunity that Storfund has. Coming from such a well-established investment house, this was a real pat on the back,” said George Brintalos, CEO. “This deal means we will be able to satisfy increased demand in the US and Europe and drive Storfund’s expansion into Latin America and Asia Pacific.”
Fasanara Capital, a pioneer and leader in fintech financing has been investing heavily in ecommerce lending platforms over the last few years. “Storfund is a true tech-first company, capable of delivering globally; it just needs the funds to reach scale,” said Fasanara Capital’s CEO, Francesco Filia. “They’ve built their brand on transparency, particularly on pricing, and on international reach which has helped them win large, experienced retailers as clients.”
Storfund’s founders set up the business in 2018 to bring what is a common financing product to ecommerce. As a still young sector, ecommerce is underserved by banks and traditional providers of capital who lack the technology and risk management tools to integrate with marketplaces and service the needs of ecommerce retailers.
“Marketplaces have been the big winners in the rise of ecommerce; they provide an unrivalled platform for retailers of all sizes to expand throughout the world and they’ve built the necessary infrastructure to support this – but they know their retailers can’t thrive without liquidity and fast access to cash,” said Akbar Ahsan, co-founder, “it’s the demand from both ends – retailers and marketplaces – which makes Storfund’s service so attractive.”
Storfund has built its growth on providing frictionless capital to ecommerce retailers and embedding its service within global marketplaces and it expects this growth to accelerate, with several large announcements coming up.
Storfund is a global fintech on mission to democratise capital for ecommerce marketplace retailers. Established in London in 2018, the concept is simple “Sell today, get paid today”.
The success of ecommerce marketplaces has created exceptional opportunities for growth, and with it, the need for cashflow. By eliminating payment delays on marketplaces, Storfund allows retailers to restock more quickly, negotiate better terms with suppliers and plan more effectively. Storfund’s unique proprietary technology integrates with marketplaces, enabling automatic payments every day.
Storfund is Amazon’s only approved global provider, delivering services in 17/20 Amazon marketplaces and has a fast-growing footprint on other marketplaces, with partnerships across the globe.
1 Adobe Digital Economy Index, 2021
2 Salesforce, 2019
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