Embedded finance start-up Parafin raises $60m Series B
Fintech infrastructure start-up Parafin has raised $60 million in a Series B financing round led by GIC, Singapore’s sovereign wealth fund.
The round saw participation from new and existing investors, including Series A and seed lead investors Thrive Capital and Ribbit Capital.
The new cash takes Parafin’s total equity raised to date to $94 million.
Founded in 2020 by former Robinhood employees Sahill Poddar, Ralph Furman and Vineet Goel, Parafin is a full-stack embedded financial infrastructure firm that enables platforms such as marketplaces and payment processors to launch and embed financial services.
The company manages the product, underwriting, capital markets, compliance and marketing aspects for its partners, allowing companies that serve small businesses to launch a white-label financial services programme with Parafin in as little as a few days.
Parafin co-founder Vineet Goel says: “Small businesses have a huge, unmet need for capital and are poorly served by the status quo.”
With the new funds, Parafin intends to launch new products for small businesses, such as business charge cards, and cement its market position.
Parafin’s engineering lead Sanyam Satia says: “Most platforms fail to recognise both how much untapped demand their sellers have for capital and how hard it is to build these financial products in-house.
“We’re focused on solving hard infrastructure problems so that platforms can best serve their sellers.”