New York – Gynger, a platform specializing in providing capital to companies for technology purchases, has secured $20 million in a Series A funding round led by PayPal Ventures, as exclusively disclosed to TechCrunch. This latest investment brings Gynger’s total venture capital raised to $31.7 million and signifies a significant milestone in its growth trajectory.
The Series A round saw participation from prominent investors, including Gradient Ventures (Google’s AI-focused venture fund), Velvet Sea Ventures, BAG Ventures, and Deciens Capital. In addition to equity funding, Gynger has secured a substantial debt facility from CIM (Community Investment Management), earmarked to provide up to $100 million in financing opportunities.
| Investors | Amount Invested |
|---|---|
| PayPal Ventures | $20 million |
| Gradient Ventures | Undisclosed |
| Velvet Sea Ventures | Undisclosed |
| BAG Ventures | Undisclosed |
| Deciens Capital | Undisclosed |
Founded in June 2021 under m]x[v Capital, a New York-based venture fund led by Mark Ghermezian, Gynger addresses the complexities businesses face in purchasing technology. Mark Ghermezian, previously the founder of Braze, a cloud-based customer engagement platform, identified gaps in both software sales and procurement, which Gynger aims to fill.
Gynger facilitates seamless financing, payment, and management of technology expenses, encompassing software, hardware, cloud services, and infrastructure. The platform offers unsecured lines of credit, enabling businesses to extend their financial runway and optimize cash flow management.
- AI-driven Credit Underwriting: Utilizes advanced AI and data analytics to assess creditworthiness and recommend tailored financing solutions.
- Fast Approval Process: Application process takes less than 10 minutes with credit decisions delivered the next day.
- Payment Flexibility: Offers various payment terms to suit business needs, providing immediate access to funds upon approval.
Gynger operates in a thriving market, as evidenced by Forrester’s projection that global tech spending will reach $4.7 trillion by 2024. The platform has reported substantial growth, with revenue increasing over 700% year-over-year. While specifics on revenue figures were not disclosed, Gynger has expanded its customer base significantly, supporting transactions across a wide array of vendors, including industry leaders like AWS, Google Cloud, and Salesforce.
As a ‘Buy Now, Pay Later’ (BNPL) service for corporate technology purchases, Gynger generates revenue through interest on loans, loan origination fees, interchange fees from its card program, and service fees from vendors. Future revenue streams are expected from SaaS/platform fees, further diversifying its income sources.
With the new capital infusion, Gynger plans to scale its operations and enhance its platform’s capabilities. Mark Ghermezian emphasized the company’s evolution beyond early-stage startups to serving more mature enterprises, spanning from Series A to pre-IPO stages. Gynger aims to extend its services beyond the technology sector into verticals such as real estate, retail, healthcare, and AI, broadening its market reach and impact.
James Loftus, Managing Partner at PayPal Ventures, expressed confidence in Gynger’s unique positioning: “Embedding payments and financing solutions within the SaaS buying and selling experience represents a significant market opportunity. Gynger’s ability to create deep relationships and drive network effects sets it apart in the AR/AP platform space.”
Gynger’s latest funding round marks a pivotal moment in its journey to redefine corporate finance in the technology sector and beyond. With robust financial backing and strategic partnerships, Gynger is poised to capitalize on the growing demand for flexible, AI-powered financing solutions. As it expands its footprint across industries and enhances its technological capabilities, Gynger aims to solidify its position as a leader in the evolving landscape of corporate finance and procurement.
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Featured Image courtesy of Tom’s Guide