Kabbage Customers Access Over $715M In Record Q3
Kabbage exceeds its highest annual record of new customers in nine months, and reports repeat customers access 75% of total funding
Kabbage, Inc. reports small businesses in the U.S. accessed more than $715 million of capital in the third quarter through Kabbage, putting the company on pace to provide customers access to nearly $2.8 billion in 2019. The company also added more than 42,000 unique customers year-to-date, far exceeding the 37,000 customers added in all of 2018.
Adding to the high customer growth, more than three-quarters of all Kabbage funding activity continues to be accessed by repeat customers, representing over $6 billion of the more than $8 billion accessed to date. The growth underscores the lifetime value and long-term impact of Kabbage’s 200,000 customers. The company saw a nearly 60 percent increase of new customers between January and September of 2019, and a 43 percent increase of funding accessed through Kabbage during the same period.
“It’s essential to have a business model that’s built on scalable long-term growth, and repeat business is a critical metric,” said Kabbage CEO Rob Frohwein. “Our data and technology platform allows us to re-underwrite customers daily so they have a reliable source of funding 24/7. Thanks to the speed at which our technology allows us to serve them, we’ve seen record highs, serving nearly 1,900 small businesses who have accessed over $13 million in a single day.”
Small businesses connect their verified business data to Kabbage for a fully-automated funding decision in minutes. If qualified, customers can access the exact amount of funding they need when they need it through Kabbage, reducing small businesses’ risk of borrowing too much and for too long. The flexibility and data connectivity aids in Kabbage’s ability to maintain a loyal customer base that continually relies on funding through Kabbage to support daily operational costs and invest in new opportunities.
Kabbage’s success has been fueled by significant milestones and advancements throughout 2019, including:
- In January, launching Pay Later with Alibaba.com to provide small businesses fully automated financing at checkout without leaving Alibaba.com.
- In April, securing the largest asset-backed securitization (ABS) by a small business online lending platform to date for $700 million.
- In July, closing a $200 million revolving credit facility.
- In September, acquiring assets of Silicon Valley-based Radius Intelligence, a leading small-business data platform.
- In September, launching the Kabbage Small Business Revenue Index, an interactive tool analyzing revenue trends of U.S. small businesses drawing from 2 million live data connections.