Pipe Secures $100 Million Credit Facility from Victory Park Capital
San Francisco-based capital platform Pipe has secured a new $100 million credit facility from Victory Park Capital (VPC). This facility has the potential to increase to $200 million in the future and is designated to support Pipe’s recently launched embedded Capital-as-a-Service solution for small and medium-sized businesses (SMBs).
Pipe’s new offering is specifically designed to serve payment firms and vertically integrated software vendors. Founded in 2019, Pipe enables partners to embed its capital solution into their own ecosystems through APIs and infrastructure, enhancing the merchant experience and enabling the monetization of payments in a mutually beneficial manner.
The new facility will allow Pipe to expand its capacity to more than $1 billion per year in originations for SMBs, according to CEO Luke Voiles.
Tom Welch, partner at VPC, commented on the investment, noting that both companies share a mission of providing capital solutions to enterprises often overlooked by traditional financing sources.
This announcement comes after Pipe’s significant leadership hiring spree last year.
To build a “fintech dream team,” as described by Voiles, the company brought on:
- Yasmin Moaven as Chief Operations and Marketing Officer,
- Manpreet Dhot as Chief Risk Officer,
- Scott Polchleb as Chief Innovation Officer, and
- Namrata Ganatra as Chief Product and Technology Officer.
Source: fintechfutures.com
