US start-up Parafin lands $125m warehouse facility from SVB and Trinity Capital


Embedded finance fintech Parafin has secured a $125 million warehouse facility from Silicon Valley Bank (SVB), a division of First Citizens Bank, alongside its lending partner Trinity Capital.

Founded in 2020 by former Robinhood employees Sahill Poddar, Ralph Furman and Vineet Goel, Parafin provides embedded financial infrastructure to enable companies such as payment processors and marketplaces to provide growth capital to small businesses on their platforms.

The San Francisco-headquartered start-up utilises a machine learning-driven underwriting model to evaluate a firm’s sales performance to ascertain eligibility and craft personalised financing solutions. The fintech claims to have served “tens of thousands of businesses” and to have extended offers totalling $5 billion since its launch.

The new facility will be used to support the company in providing capital to merchants on platforms such as Amazon and DoorDash.

Sahill Poddar, CEO of Parafin, says that the firm’s partnership with SVB and Trinity Capital will help expand its “financial service offerings and capacity to supply sellers with fast and flexible financing to scale their businesses”.

The company previously raised $60 million in a Series B funding round led by Singapore’s GIC in 2022.

Parafin joins a growing list of fintech companies that have secured financing facilities this year. Among them are UK-based firms like Kriya and Hokodo, as well as Pagaya Technologies, headquartered in New York, which recently obtained a $280 million credit facility led by BlackRock.