PYMNTS MonitorEdge May 2024

Capchase Secures $114 Million to Provide Funding for SaaS Businesses

Capchase received a 105-million-euro (about $114 million) credit facility warehouse led by Deutsche Bank to support flexible financing for software-as-a-service (SaaS) businesses in the United Kingdom and Europe.

The company will do so through Capchase Grow, its solution that offers eligible companies access to non-dilutive financing, Capchase said in a Tuesday (May 21) press release.

“Over the past year, there has been a growing interest among European startups in non-dilutive funding as founders seek alternative ways to enhance their cash flow amidst increasingly challenging conditions for securing venture capital,” Capchase Co-founder and CEO Miguel Fernandez said in the release.

The new debt financing will enable Capchase to support the growth of these startups in the current economic climate, Fernandez added.

From 2022 to 2023, European startups’ non-dilutive funding activity increased by nearly half while the region’s venture capital funding declined by more than 45%, according to the release.

Together with Capchase Grow, the company also offers Capchase Collect, which is a self-service product that speeds up invoice collections and decreases the amount of overdue invoices, and Capchase Infra, which is a technology suite that helps banks and nonbank lenders accelerate their digital lending roadmap, the release said.

“We are committed to being the trusted finance and revenue partner for software companies, and this partnership ensures a long-lasting presence in key geographies around the globe,” Ayaas Bhamla, vice president of capital markets at Capchase, said of the new credit facility warehouse. “Having a global banking partner like Deutsche Bank supports our mission and brings a fortified balance sheet to support the founders on our platform.”

The company introduced Capchase Collect in December, saying the invoice collection tool is designed to help SaaS companies secure revenue from customers in a way that is consistent and efficient. Capchase Collect automates invoicing by sending reminders and providing a system for easy repayment.

In May 2023, the company added an installment payment tool for SaaS companies that sell via long-term, annual contracts. Capchase Pay is a B2B buy now, pay later (BNPL) solution that lets buyers pay in installments and gives the vendor the full payment upfront.

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