On behalf of, an Israeli provider of purchasing financing solutions for U.S. business-to-business (B2B) buyers and sellers, announced Wednesday that it raised $ 19 million in startup financing and created a new line of credit for a $ 100 million total provided by funds managed by Ares Management Corporation.
The venture financing round was led by existing investors MissionOG, Viola Growth, Viola Credit and Vintage Investment Partners. New investors Migdal Insurance and La Maison Partners also participated in the round, according to the company’s statement.
Previous investors in Behalf include financial services giant Visa, months after the company raised $ 150 million in debt financing in 2018.
Investing in this round brings Behalf’s capital raised to $ 119 million, allowing the company to expand the availability of its purchase financing to a broader range of B2B merchants and small and medium-sized business (SMB) customers at the same time. that extends the capabilities of your platform.
“The B2B e-commerce market is ready for transformation. Merchants are recognizing the opportunity to generate new revenue by implementing purchase financing, ”said Rob Rosenblatt, CEO of Behalf. “At the same time, small and medium-sized enterprises (SMEs) need access to affordable financing options, a constant challenge that is exacerbated during COVID,” he added.
Rosenblatt said that even though “the US economy is improving, SMEs continue to seek financial assistance to purchase critical supplies, inventory and equipment. They often lack the necessary spending power on their personal or business credit cards. By offering purchase financing with flexible terms, B2B merchants can increase average order size by up to 50-80 percent while reducing their risk, improving cash flow and driving operational efficiency, ”he explained.
The Behalf solution offers B2B merchants consumer-centric “For now, pay later” offerings, along with other capabilities tailored for B2B commerce, such as a seamless checkout process to improve customer loyalty, easy integration with existing point of sale systems to avoid disruptions, incorporation of scoring models to address the complexity and risk of SMB lending, the ability to serve the needs of business customers of various sizes, fund higher average order value transactions and share best practices with other B2B merchants, the company said.
Migdal Deputy CEO and Chief Investment Officer Guy Fischer said they are pleased to invest in the current round of Behalf. “This investment is made with our internal $ 1.5 billion FinTech fund and is in line with our strategy of investing in FinTech companies that have strong growth potential. This injection of capital should support a steep growth curve for the company, ”added Fischer.
“We believe there is a great market opportunity for a B2B offering targeting the most complex and real-time financing needs of SMBs,” suggested Jeffrey Kramer, partner and director of ABS in Alternative Credit Strategy at Ares Credit Group. “We are very pleased to offer a line of credit that will help support the company to achieve its growth objectives,” he said.
Behalf was founded in 2011 and is based in Ra’anana, Israel and New York City.