E-Commerce Loan Startup Wayflyer Secures $1B
Wayflyer, a creditor for e-commerce startups, has secured $1 billion from investment management firm Neuberger Berman. Categorizing the funding as an “off-balance sheet program” allows Wayflyer to exclude specific assets and liabilities from its reporting. This strategic choice helps in maintaining a lower debt-to-equity ratio. Before the Neuberger Berman deal, Wayflyer had obtained credit worth hundreds of millions to support its lending operations.
“This $1 billion off-balance sheet purchase of assets from Neuberger Berman demonstrates the power, success and resilience of our proposition and will provide the capital firepower for us to ensure our e-commerce customers can continue to thrive in any economic conditions.” – Wayflyer co-founder and CEO Aidan Corbett said in a canned statement.
Over an undisclosed timeframe, Neuberger Berman will acquire assets worth up to $1 billion from Wayflyer. The off-balance sheet arrangement is expected to offer Wayflyer more favorable terms.
Wayflyer specializes in providing revenue-based financing to e-commerce ventures, offering loans typically ranging from $300,000 to $400,000. Companies primarily use these funds to cover inventory procurement and shipping costs.
When determining loan and repayment decisions, the company leverages diverse data sources. These include platforms such as Shopify and Woocommerce, insights from Trustpilot reviews, data from Google Analytics, and broader performance information regarding shipping services.
Since its formation in 2019, Wayflyer has experienced substantial growth, serving over 3,000 clients and disbursing more than $2 billion in loans. Despite e-commerce challenges, investors are confident in continued sector growth, especially in the U.S. Hence, the funds will drive the company’s continued growth efforts.
