Business
Business

Online merchant lender Kabbage raises $17 million

By David Markiewicz
Aug 17, 2011

Kabbage Inc., an Atlanta-based lender to online merchants, announced that it has raised $17 million from a group of investors.

The funds will be used to "pursue additional marketplaces, distribution relationships, financial products and international expansion," the company said.

Kabbage analyzes the business data of online merchants who apply for loans, including their transaction history, customer traffic and reviews, and products, and it uses the data to determine whether to make them cash advances.

Rob Frohwein, Kabbage's founder and CEO, said, "It is extremely difficult and time-consuming for these businesses to apply for small business loans, not to mention actually getting access to funds from a traditional bank." He said Kabbage, which was founded in 2008, fills the void.

The company currently supports merchants operating on eBay, Amazon and Yahoo, and it plans to support merchants on channels including Facebook, Etsy, Shopify and Marketplace at Sears.com.

Funding was led by Mohr Davidow Ventures, an early stage venture capital firm that has $2 billion under management.

About the Author

David Markiewicz
More Stories

Keep Reading

Tokyo Tower is seen amid tall buildings as a container ship leaves a cargo terminal in Tokyo, April 9, 2025. (Hiro Komae/AP)

Credit: AP

Tariff threats aimed at South Korea and Japan, two top Georgia trade partners

Trump announced 25% import taxes will take effect next month on products originating in South Korea and Japan, two key trade partners for Georgia and the nation.

5m ago

Airport’s planned overnight power outages will begin Tuesday

The tests, which will affect lighting, escalators, elevators and major terminal systems like baggage claim, are set to happen between the hours of 11:59 p.m. and 2:30 a.m.

California upgraded its film incentive program. How will this affect Georgia?

The increase puts California’s incentive in closer competition with Georgia’s own, which has long been considered the most generous programs in the country.

The Latest

Cast member Mark Ruffalo works during the filming of "Avengers: Infinity War," one of several Marvel films to shoot in Georgia. (AP Photo/Mike Stewart)

Credit: AP

California upgraded its film incentive program. How will this affect Georgia?

Opinion: Why do we name our cars?

Home Depot makes $5.5B acquisition to increase business with pro contractors

Featured

Scott Jackson (right), business service consultant for WorkSource Fulton, helps job seekers with their applications in a mobile career center at a job fair hosted by Goodwill Career Center in Atlanta. (Ziyu Julian Zhu/AJC)

Credit: Ziyu Julian Zhu/AJC

Unemployment in Georgia is down, but so is the labor force. Why?

Georgia’s labor force has declined by nearly 30,000 compared to May last year. Here are some reasons why.

Georgia appeals court rules election boards must certify results

The Georgia Court of Appeals ruled that election board members are required to certify election results even when they have concerns about fraud or errors.

Atlanta crypto biz owner caught up in fraud says it’s ‘like living in a James Bond movie’

Prosecutors say North Korean IT specialists are 'infiltrating' tech companies in the U.S. as remote workers to steal money from businesses and funnel it back to North Korea.