Bread, a startup that builds customisable pay-over-time financing options for online merchants, has raised $126 million in equity and debt financing.
Menlo Ventures led the equity round, with participation from Bessemer Venture Partners, RRE Ventures, and others. The debt facility was provided by Victory Park Capital.
Bread targets online retailers that sell high-value items, such as sofas, providing technology that lets customers ditch credit cards for loans that have predictable monthly instalments. Loans are made by Cross River Bank.
The firm claims that, unlike rivals, it allows each merchant to white-label its offering to optimise the experience for its customers. Sellers can set up different payment plans and different experiences tailored to their products.
Josh Abramowitz, CEO, Bread, says: "Current private-label options were built for an offline world. They don't speak the interactive language of e-commerce and don't work well on the web. Bread's technology offers a different type of solution. It is optimized for the web, and designed to bring purchase finance into the online era."
Founded in 2014, the firm says it has seen volumes grow by five times over the past year as bigger merchants sign up for its technology. The new money will be used to expand this merchant base and add engineers to the team