Capchase Acquires $114 Million to Finance Software as a Service Enterprises

Capchase Acquires $114 Million to Finance Software as a Service Enterprises

A credit facility warehouse led by Deutsche Bank for 105 million euros, or roughly $114 million, was granted to Capchase in order to facilitate flexible financing for software-as-a-service (SaaS) companies operating in the UK and throughout Europe.

Capchase announced in a news release on Tuesday, May 21, that the business will accomplish this through Capchase Grow, a solution that provides qualified companies with access to non-dilutive financing.

According to the release, Miguel Fernandez, the CEO and co-founder of Capchase, “over the past year, there has been a growing interest among European startups in non-dilutive funding as founders seek alternative ways to enhance their cash flow amidst increasingly challenging conditions for securing venture capital.”

Fernandez continued, “Capchase will be able to support the growth of these startups in the current economic climate thanks to the new debt financing.”

According to the release, non-dilutive investment activity for European companies climbed by nearly half between 2022 and 2023, while venture capital funding in the region fell by more than 45%.

In addition to Capchase Grow, the company also provides Capchase Infra, a technology suite that aids banks and nonbank lenders in expediting their digital lending roadmap, and Capchase Collect, a self-service product that expedites invoice collections and reduces the quantity of past-due invoices, according to the release.

“We are committed to being the trusted finance and revenue partner for software companies, and this partnership ensures a long-lasting presence in key geographies around the globe,” Ayaas Bhamla, vice president of capital markets at Capchase, said of the new credit facility warehouse. “Having a global banking partner like Deutsche Bank supports our mission and brings a fortified balance sheet to support the founders on our platform.”

Capchase Collect is an invoice collection tool that the firm developed in December with the goal of assisting SaaS companies in obtaining regular and effective income from their clients. By offering a mechanism for simple payback and sending reminders, Capchase Collect automates invoicing.

The business introduced an installment payment option in May 2023 for SaaS providers with annual, long-term contracts. A B2B buy now, pay later (BNPL) system called Capchase Pay allows customers to pay in installments while giving the seller the entire amount up front.