Kabbage

Last updated
Kabbage Inc.
Kabbage logo.png
Type of site
 Financial services
Dissolved 2020 (2020)
SuccessorAmerican Express Business Blueprint
Owner American Express
Created by
Revenue Increase2.svg $200 million(2017)
URL kabbage.com [ dead link ]
LaunchedFebruary 12, 2009;16 years ago (2009-02-12)
Current statusRedirected

Kabbage was an online financial technology company based in Atlanta. [1]

Contents

The company provided unsecured loans and funding directly to small businesses and consumers through an automated lending platform. [2] In 2020, the company was acquired by American Express and its mobile app was rebranded as American Express Business Blueprint. [3]

History

Kabbage launched and began providing loans in May 2011. [4] In 2012, it opened its San Francisco office and subsequently raised $30 million in Series C financing. [5] [6] Beginning in February 2013, the company expanded internationally, entering the United Kingdom [7] and raising further debt financing. [8] Between 2014 and 2017, the company raised a further $435M in equity funding, and $970M in debt financing.

At its peak, Kabbage lent over $1B each year to small businesses. On October 16, 2020, Kabbage was acquired by American Express and was subsequently rebranded as American Express Business Blueprint. [3]

In October 2022, Kabbage d/b/a K Servicing (an entity which was not acquired by American Express) filed for Chapter 11 bankruptcy following a report by the United States Congress which suggested it might have facilitated fraudulent Paycheck Protection Program payouts during the COVID-19 pandemic but the allegations are, as of yet, unsubstantiated. [9] [10] [11]

Purpose

Kabbage provided small businesses with debt facilities. In March 2020, Kabbage suspended lending services for active and new customers in favor of offering loans to U.S. businesses through the PPP (Paycheck Protection Program) introduced as part of the Trump administration's COVID-19 economic stimulus package. [12]

References

  1. ↑ "Report: Atlanta's Kabbage in talks to be bought by American Express". American City Business Journals . Retrieved 2020-11-03.
  2. ↑ O'Brien, Sara Ashley (17 July 2014). "Banks won't lend? Use these guys instead". CNN Money. CNN.
  3. 1 2 Treece, Kiah; Tarver, Jordan (February 21, 2022). "Kabbage Business Loans Review 2022". Forbes Advisor. Retrieved June 30, 2022.
  4. ↑ Williams, Charles (9 April 2014). "Kabbage raises USD270m from credit facility". Reuters.
  5. ↑ Rao, Leena (18 September 2012). "Data-Focused Online Merchant Lender Kabbage Raises $30M From UPS, SV Angel And Others". TechCrunch.
  6. ↑ "2012 Red Herring North America: Winners". Red Herring. Retrieved on 2014-11-20.
  7. ↑ Rao, Leena (12 February 2013). "Kabbage Brings Data-Focused Online Merchant Lending To The UK". TechCrunch.
  8. ↑ Rao, Leena (3 April 2013). "Kabbage Raises $75M In Debt To Fund Online Merchants On Amazon, eBay, And Etsy". TechCrunch.
  9. ↑ "Loan Platform Kabbage Files for Bankruptcy Amid PPP Investigations". Wall Street Journal. October 4, 2022.
  10. ↑ "Hundreds of PPP Loans Went to Fake Farms in Absurd Places". ProPublica . May 18, 2021. Retrieved 6 December 2022.
  11. ↑ "A congressional report says financial technology companies fueled rampant PPP fraud". NPR . 6 December 2022. Retrieved 2022-12-07.
  12. ↑ Faux, Zeke; Surane, Jenny. "SoftBank-Backed Lender Kabbage Cuts Off Businesses As Cash Needs Mount". Washington Post. Archived from the original on 4 April 2020. Retrieved 21 April 2020.
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