ChargeAfter, a global network that enables retailers to match their consumers with credit and financing offers, raised $8M in its Series A funding round.
ChargeAfter provides customers with access to an integrated network of multiple lenders through a single interface. The platform allows consumers across the credit-rating spectrum to instantly "apply and buy" with point-of-sale financing at a participating merchant.
Propel Venture Partners led the round, joined by PICO Venture Partners, the Plug and Play accelerator and Synchrony.
"ChargeAfter provides a single point for retailers to tap into multiple lending partners, for lenders to scale up, and for consumers to access fair and competitive credit options when they need it," said ChargeAfter founder and CEO Meidad Sharon. "Previously, it was too cumbersome for merchants to build and manage various lending partnerships, and with limited options, consumers all too often faced rejection during point-of-sale financing." Sharon said the Israeli-American company will use the funding to grow their US-based presence with the hiring of sales and marketing industry veterans, R&D developers, a second office located in Sunnyvale, California and to further expand the network of merchants and lenders.
"By leveraging a range of potential lenders, ChargeAfter has already proven successful in increasing acceptance rates," said Jay Reinemann, partner at Propel Venture Partners. "ChargeAfter aligns with our worldview of expanding financial access and building new technology infrastructure. By creating this layer - a distribution system that neither banks nor retailers could build on their own - ChargeAfter is doing for credit what the large card networks once did for transactions."
Consumers using ChargeAfter experience a white-labeled, seamless process that takes minimal input and generates approved credit lines within seconds. On the backend, retailers use one platform to process and manage transactions from all lenders, with a dashboard that filters charges according to channel, lender, and country.
"Everyone wins with ChargeAfter. Shoppers get instant, personalized loans. Merchants increase sales and enjoy simplified transaction processing. Lenders reach new consumers and reduce integration costs," said Elie Wurtman, managing partner at PICO Venture Partners.
Merchants in ChargeAfter's network have seen a 30% increase in sales and a 50% increase in average order size. They've also had 85% approval rates for shopper financing - compared to the industry average of 30-50%. ChargeAfter won the 2018 BBVA Open Talent "Fintech for People" award.