Wayflyer revolutionizing e-commerce financing with a $1B boost

Wayflyer, a name in e-commerce startup financing, recently secured a staggering $1B in capital. The substantial investment comes from Neuberger Berman, an investment management firm.

Established in September 2019 by Aidan Corbett and Jack Pierse, Wayflyer uses data analytics to provide revenue financing to e-commerce merchants. The Ireland-based company's customers typically borrow between $300,000 to $400,000 for expenses such as inventory and shipping. 📦📈

• Key Details about the Deal: The funding setup is rather unique, referred to as an "off-balance sheet program.” This allowed Wayflyer to maintain certain assets and liabilities without reporting them on its balance sheet. The result? A lower debt-to-equity ratio for Wayflyer.

• Impact on Wayflyer's Portfolio: Wayflyer had already secured hundreds of millions in credit for its loans and now will buy up to $1B of assets from Neuberger Berman-managed funds.

• Win-Win Deal: With its off-balance sheet nature, this arrangement ensures that Wayflyer's terms are not just good but advantageous.

• Predictive Capabilities: Wayflyer uses various data sources (Shopify, Woocommerce, TrustPilot, Google Analytics, etc.) to predict potential financing issues for a merchant.

• Wayflyer's Growth: Since its inception, Wayflyer has seen rapid growth, boasting over 3,000 customers and surpassing $2B in deployed loans. Over 80% of customers return for additional financing.

• Future of E-commerce: Experts like Morgan Stanley predict a rapid increase in the e-commerce sector, potentially reaching $5.4T in 2026, up from $3.3T today.

Although not yet profitable, Wayflyer plans to use the $1B funds to fuel its growth, particularly in the U.S. 💸