FinTech News
Technology Financing Company Gynger Raises $20 Million
A FinTech that helps tech-buying businesses finance their purchases has closed a new round of funding.
About the round:
This week, Gynger announced that it had raised $20 million. The Series A was led by PayPal Ventures, while Gradient Ventures, Velvet Sea Ventures, BAG Ventures, and Deciens Capital also participated. In addition to the equity round, the company secured a debt facility of $100 million from Community Investment Management. Previously, Gynger raised a $11.7 million seed round in 2022.
With the new round of funds, Gynger says it plans to scale both its team and its operations. Additionally, it says that the capital will help it to accelerate its vision.
About Gynger:
Gynger is an embedded finance platform aimed at buyers and sellers of technology. The company is building an automated service that allows businesses to finance technology purchases. On the buyer side, “buy now, pay later” type payment options are available. Meanwhile, technology sellers can integrate Gynger into their platforms to offer financing to their customers.
What they’re saying:
Discussing the company’s work so far and early success, Gynger’s CEO and founder Mark Ghermezian said, “Over the last year, we have experienced tremendous growth and demand. We are revolutionizing how companies buy and sell technology by providing a payments solution that addresses the needs of both vendors and their customers. We are building the future of flexible financing for all technology.” Commenting on the funding, Ghermezian added, “We are thrilled to welcome PayPal Ventures as an investor to help push our growth to a whole new level.”
Meanwhile, PayPal Ventures Managing Partner James Loftus said of the firm’s investment, “Gynger is changing the way businesses buy software. Companies from seed stage startups to enterprise can unlock flexible payment terms on any technology expense, regardless of the vendor’s terms, making it possible to purchase tools needed for growth while also preserving cash. We couldn’t be more thrilled to be supporting them on their journey.”
My thoughts:
Considering how crucial technology (including software and hardware) can be to businesses these days, it’s understandable that this would be a major expense. In fact, according to figures cited by Gynger, B2B software-as-a-service spending currently amounts to $900 billion annually. With that in mind, Gynger’s focus on financing for these transactions seems incredibly smart. Sure enough, this Series A shows that their vision has legs and that the company could well be on its way to becoming a specialized force in FinTech down the road.
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