Toronto-based e-commerce financier Clearco announced today that it has secured $60 million in Series D funding as part of its recapitalization efforts. The funding round was led by existing investors Inovia Capital and Founders Circle Capital. In addition to the Series D round, Clearco has also obtained new asset-backed financing, which provides up to $100 million in financing capacity. The company aims to use these funds to support $850 million worth of originations over the next two years.
Key Takeaway
Toronto-based e-commerce financier Clearco secured $60 million in Series D funding as part of its recapitalization efforts. The funding, led by existing investors Inovia Capital and Founders Circle Capital, will enable Clearco to provide growth capital to e-commerce businesses and enhance its financial and operational capabilities. The company, known for its AI-powered underwriting technology, aims to support $850 million worth of originations over the next two years. The new funding comes at a critical time, as startups and e-commerce businesses face challenges in accessing capital due to increased interest rates and tightened monetary policies.
Clearco’s AI-powered Underwriting Technology
Founded in 2015 as Clearbanc, Clearco utilizes AI and proprietary machine learning-based technology to underwrite businesses and assist customers in funding their inventory and marketing invoices. The company provides financing to e-commerce businesses with invoice amounts ranging from $10,000 to $2 million. To date, Clearco has financed over 10,000 companies, supporting them with more than $2.5 billion in funding.
Under the leadership of its new CEO, Andrew Curtis, Clearco has undergone a restructuring process over the past 12 to 15 months. The company has shifted its focus to its Invoice Funding product, which offers predictable payment amounts and easy-to-follow terms. Curtis expressed confidence in Clearco’s current status and emphasized the company’s commitment to providing growth capital to e-commerce customers.
Strong Financial Position and Operational Preparedness
Clearco’s recapitalization efforts have positioned the company for future success. The Series D funding, combined with the asset-backed financing, has not only strengthened Clearco’s financial position but has also enhanced its operational capabilities. According to Curtis, these transactions have created an extraordinary outcome and put Clearco in an incredibly strong position to serve its customers.
Supporting Startups and E-commerce Businesses
The current economic landscape presents challenges for startups and e-commerce businesses, with reduced access to capital and increased interest rates. Curtis emphasized the significance of Clearco’s recapitalization, particularly in helping small business owners navigate these challenging times. The additional funding will allow Clearco to generate free cash flow, scale towards profitability, and continue supporting merchants in the future.
