PYMNTS MonitorEdge May 2024

Gynger Raises $20 Million to Scale Embedded Financing Platform

Gynger has raised $20 million in a Series A funding round led by PayPal Ventures to support its embedded financing platform for technology purchases.

The company will use the new funding to scale its team and operations and fuel its growth, according to a Thursday (June 20) press release.

Gynger also secured a debt facility of up to $100 million from Community Investment Management to scale its financing of technology spend in response to customer demand, according to the release.

“Over the last year, we have experienced tremendous growth and demand,” Mark Ghermezian, CEO and founder of Gynger, said in the release. “We are revolutionizing how companies buy and sell technology by providing a payments solution that addresses the needs of both vendors and their customers.”

Gynger provides customers with a solution that makes it easier for businesses to finance their software and technology purchases, per the release. It is building an embedded financing platform that is fully automated and seamless for both buyers and sellers.

With this solution, companies can purchase software and services through non-dilutive capital, allowing them to optimize their cash flow by spreading payments out over flexible terms, the release said.

For technology vendors, Gynger’s platform allows them to offer flexible payment terms to their customers, while getting paid upfront through the embedded financing platform, per the release. Hundreds of technology vendors are using the financing platform.

The platform uses artificial intelligence (AI) and data analytics to recommend financing opportunities and to underwrite and approve credit, according to the release.

“Gynger is changing the way businesses buy software,” James Loftus, managing partner at PayPal Ventures, said in the release. “Companies from seed-stage startups to enterprise can unlock flexible payment terms on any technology expense, regardless of the vendor’s terms, making it possible to purchase tools needed for growth while also preserving cash.”

PYMNTS Intelligence has found that roughly 1 in 5 lenders show high interest in launching new embedded lending products in the next two years.

Among lenders that serve small and medium-sized businesses, 22% express high interest and 29% moderate interest, according to “Embedded Lending: From the Lender’s Perspective,” a PYMNTS Intelligence and Visa collaboration.