Clearco Secures $60 Million in Funding to Support eCommerce Businesses

Toronto-based FinTech company Clearco has secured $60 million in a Series D funding round, as part of a recapitalization effort.

The funding was led by Inovia Capital and Founders Circle Capital, both of which are long-term investors in Clearco, the FinTech said in a Wednesday (Oct. 4) press release. Additionally, Clearco has closed an asset-backed financing facility with Pollen Street Capital.

These strategic moves by Clearco aim to solidify its position as a leading provider of growth capital to eCommerce businesses, according to the release. The new financing facility is expected to provide up to $100 million in financing capacity, supporting $850 million of Clearco originations over the next two years.

This recapitalization represents a significant milestone for Clearco, following a year of transformative changes in technology, product offerings and management, the release said.

“All of these actions allow us to continue to support the growth of eCommerce businesses during a time of funding challenges for many companies,” Clearco CEO Andrew Curtis said in the release. “We are firm believers in the continued resilience and growth of eCommerce as an industry, and we are committed to providing the capital and resources these businesses need to succeed.”

The company has shifted its product focus over the last 12 months to invoice funding, a streamlined capital solution that offers predictable payment amounts and easy terms, according to the press release. Leveraging artificial intelligence (AI) and proprietary machine learning (ML) technology, Clearco underwrites businesses and assists customers in funding inventory and marketing invoices. The firm has already facilitated over $2.5 billion in funding for more than 10,000 eCommerce businesses.

The invoice funding product offered by Clearco serves as a stable source of working capital, enabling companies to scale their operations and improve cash flow, the release said. This is particularly valuable in a market where lenders are becoming more cautious about providing capital. Clearco customers can access between $10,000 and $2 million in invoice funding, with predictable payment amounts over periods typically ranging from four to six months and no hidden fees.

Online small and medium-sized businesses (SMBs) have the potential for success even though the digital market is increasingly crowded, Clearco Executive Chairman and Co-founder Andrew D’Souza told PYMNTS in an interview posted in May 2021.

“The only limit to growth is access to capital and knowledge of what to do with that capital,” D’Souza said. “If [a business] has both of those things, you can grow infinitely.”