FinTech startup Bread announced that it has completed a $60 million round of equity financing.
Founded in 2014, Bread offers white-label solutions for retailers who wish to offer convenient online lending to their customers in the hopes that they will spend more money, on more things, when they have the ability to pay later. Last year, it raised $126 million in a Series B venture capital (VC) funding round
It will use this new capital to expand its omnichannel capabilities and move into new verticals, as well as offer additional cross-channel marketing strategies so its retailers can achieve better conversions and improve customer lifetime value (LTV).
“Shoppers’ expectations are higher than ever before,” co-founder and CEO Josh Abramowitz said in a press release. “Retailers need to be able to offer more — and better — options to provide the best possible shopping experience. With this new investment, Bread will continue to drive innovation and develop industry-leading marketing solutions that help brands and retailers connect with their customers in more meaningful ways.”
The funding, led by Kinnevik with additional investment from Bread’s existing investors Bessemer Venture Partners, Menlo Ventures, RRE Ventures, Colle Capital Partners, and Cue Ball, comes as Bread is on track to increase its revenue more than 5x this year. It has also seen a boost in the number of retailers using its platform, including the recent additions of Semihandmade and Noémie.
“What sets Bread apart in a crowded market is its distinctive functionality and digitally focused product. Bread goes beyond the one-size-fits-all experience and tailors different payment plans and integrations to a specific retailer’s product set and site,” said Chris Bischoff of Kinnevik. “We’re excited to see more and more retailers use Bread to transform their approach to lending in order to improve results and drive bottom-line growth.”
Loans offered through the Bread platform are made by Cross River Bank, a New Jersey state-chartered bank, Member FDIC.