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Jun 25, 2024 454

"PayPal Ventures leads $20M round into Gynger, which offers companies ‘buy now, pay later’ for technology purchases"

#global

"Gynger, a platform that lends capital to companies for technology purchases, has raised $20 million in a Series A round led by PayPal Ventures, it told TechCrunch exclusively."

Gynger, a platform that lends capital to companies for technology purchases, has raised $20 million in a Series A round led by PayPal Ventures, it told TechCrunch exclusively. This financing brings the New York-based startup’s total venture capital raised to $31.7 million, with participation from Gradient Ventures (Google’s AI-focused venture fund), Velvet Sea Ventures, BAG Ventures, and Deciens Capital. In addition to the equity raise, Gynger has secured a debt facility from Community Investment Management (CIM) with an agreement to fund up to $100 million. Founded in June 2021 out of m]x[v Capital by Mark Ghermezian, Gynger works with both buyers and sellers of technology, providing businesses with unsecured lines of credit to finance, pay, and manage all technology-related expenses.

Gynger leverages advanced artificial intelligence and data analytics to underwrite and approve credit for customers, enabling a streamlined application process that takes less than 10 minutes with next-day credit decisions and immediate access to funds once approved. The platform functions as a buy now, pay later service for companies purchasing technology, handling payments to vendors on behalf of customers, who then repay Gynger over time with flexible payment terms. Gynger’s model also benefits technology vendors by offering embedded financing through an accounts receivable platform, which accelerates sales, pulls revenue forward, and shortens key financial metrics. As a result, vendors receive annual payments upfront while their customers enjoy flexible repayment options.

Gynger’s market is expansive, with global tech spend expected to reach $4.7 trillion in 2024, according to a Forrester research report. Despite starting its sales in the second quarter of 2023, Gynger has experienced significant growth, with a 700% year-over-year increase in revenue and a fivefold increase in its customer base. The company has facilitated thousands of payments across hundreds of vendors, including major names like AWS, Google Cloud, Cisco, Salesforce, and Oracle. Moving forward, Gynger plans to use its new capital to scale operations and fund loans, expanding its customer base from early-stage startups to more mature companies and venturing into other verticals like real estate, retail, healthcare, and AI. PayPal Ventures Managing Partner James Loftus believes Gynger’s unique embedded financing model will drive massive network effects and establish the company as a leading accounts receivable/accounts payable platform.