Kafene secures $75m funding to accelerate growth

Kafene, which focuses on providing credit for US underbanked customers, has secured $75 million in additional debt and equity.

Kafene is centred on the point-of-sale financing market

This includes a $50 million credit facility from Credit Suisse, with an additional $10 million provided by alternative credit asset manager Hudson Cove Capital Management.

An additional $15 million was added to Kafene’s original Series A investment, co-led by equity investors Valar Ventures and Third Prime.

The $75 million in capital is intended to allow Kafene to scale its retail footprint and significantly expand delivery of its financing platform to the 100 million-plus underbanked US consumers with limited or no access to credit.

Kafene is centred on the point-of-sale financing market, providing the underbanked with interest-free buy now, pay later (BNPL) and lease-to-own options.

It uses AI and machine learning to offer purchasing solutions to these consumers for furniture, appliances, electronics, tyres and other goods. The Kafene platform manages underwriting, approval and payment enablement.

Kafene is backed by Third Prime, Valar Ventures, Company Ventures, Global Founders Capital, Uncorrelated Ventures and other investors.

Neal Desai, co-founder and CEO of Kafene, says: “The ability to secure debt financing and equity investment underscores the stability and trajectory of our business.

“This additional capital will help drive the next phase of our growth strategy.”