When it comes to shopping in the age of the internet, almost everything can personalized and tailored to even the most hyper-specific needs.
If you want a blue couch with magenta polka dots for example, odds are you can find it somewhere. (Whether you should buy it is another story.) However, the financing options to facilitate major online purchases are often limited and rigid. Typically, merchants work with a single big bank lender, which has a narrow scope of approval.
One option doesn’t fit all consumers.”
Enter ChargeAfter. The startup aims to bring the same level of personalization that shoppers have come to expect from online retail to the experience of borrowing money. Through the company’s app, consumers can choose from a selection of personalized financing options from multiple lenders to use to purchase items from partner merchants.
The company received a boost to those efforts announcing on Wednesday that it has raised $8 million in a Series A funding. The round will enable ChargeAfter, which is headquartered in Tel Aviv, Israel, and has an office in New York, to open a second office in Sunnyvale, CA, and expand its network of merchants and lenders.
The round will also allow ChargeAfter to capitalize on the increased interest in its platform, Meidad Sharon, CEO of ChargeAfter, told Built In.
“We see a great demand for our product,” Sharon said. “The merchants are now understanding what they need, which is a platform that enables them to enjoy the benefits of all lenders and match them to the right consumers. We see it as a great time for us to expand our offices in the U.S.”
Founded in 2017, ChargeAfter set out to provide shoppers with access to more fair and obtainable lending options for their large purchases. To do so, the company partners with both lenders and merchants.
For lenders, the company limits lending opportunities to point of sale transactions only. It then delivers the loan directly to the merchant, to ensure it’s used for the consumer’s desired purpose. To increase the likelihood of an approved match, lenders can also set filters to match with desired borrowers.
For e-commerce companies, increased lending options often means increased approval rates and more sales. The company claims merchants have seen a 30 percent increase in sales and a 50 percent increase in average order size.
“One option doesn’t fit all consumers,” Sharon said. “We provide a new approach that enables merchants to be connected with a network of lenders. For consumers, that means they can get the best personal option for them.”
The company currently employs about 20 employees, but plans to grow to about 50 with this funding round. The New York and Sunnyvale offices will include primarily sales and customer success team members.
Propel Venture Partners led the round, with participation from PICO Venture Partners, the Plug and Play accelerator and Synchrony.
