Finance technology company Bread raised $126 million through a Series B funding round of equity and debt financing. Menlo Ventures led the equity round and Victory Park Capital provided the debt facility.
You know Bread as the alternative lending platform that allows companies to give their consumers customized, easy-to-understand financing options. The benefits are twofold, providing customers with a user-friendly experience and merchants with the ability to extend their brand into their payment options.
Sound familiar? That’s because stores like Macy’s and Tiffany’s have offered credit cards that boost customer loyalty and provide customized financing options. However, unlike private-label credit cards, Bread’s platform was built for modern times.
“Current private-label options were built for an offline world,” said co-founder and CEO Josh Abramowitz in a statement. “They don’t speak the interactive language of e-commerce and don’t work well on the web. Bread’s technology offers a different type of solution. It is optimized for the web, and designed to bring purchase finance into the online era.”
Founded in 2014, Bread has experienced massive growth and has increased in volume by five times in the past year alone. This funding round will be put toward continuing that growth and expanding its engineering team. In doing so, it aims to build innovative solutions to further improve the platform.
Bread is currently working with 100 smaller retailers and is adding more well-known companies to its lineup.
Image via Shutterstock.
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