Kabbage raises $6.65 million

Kabbage, a US start-up that provides working capital advances to online merchants has raised $6.65 million in a series a funding round led by BlueRun Ventures.

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Kabbage raises $6.65 million

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David Bonderman, founder of TPG Capital, Warren Stephens, CEO of Stephens and the UPS Strategic Enterprise Fund also participated in the round.

Atlanta-based Kabbage targets merchants selling goods online, offering capital advances of up to $12,000. It began making advances for eBay sellers in April, with other sites set to be added.

The firm says its technology platform analyses online merchants' sales and credit history, customer traffic and reviews and prices and inventory compared to competitors.

If they meet the requirements, applicants can have the money they need in their PayPal account within 10 minutes, claims Kabbage.

Robert Frohwein, CEO, Kabbage, says: "This round of funding will enable us to expand operations into additional marketplaces, such as Amazon, Etsy, Overstock, etc., helping small businesses to further boost today's economy."

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