Jenfi, a “growth-capital-as-a-service” platform, can present on-line companies with revenue-based financing in a little bit as a day. The Singapore-based startup introduced at the moment it has raised $6.6 million in pre-Collection B funding, led by Headline Asia. Participation got here from returning investor Monk’s Hill Ventures, which led Jenfi’s Collection A two years in the past, ICU Ventures, Granite Oak, Korea Funding Companions & Golden Equator Capital and Atlas Ventures.
Since Jenfi’s inception 4 years in the past, it has deployed greater than $25 million in non-dilutive capital to about 600 corporations. Its clients embrace Gushcloud, Ralali, Hi there Well being, Lamer Vogue, Buy2sell and Mystifly. The brand new funding might be used to develop its buyer base in Singapore, Vietnam and Indonesia, and increase into new markets in Southeast Asia, like Malaysia, the Philippines and Thailand. It should additionally allow Jenfi to refine its credit score underwriting and threat evaluation capabilities, together with its proprietary threat evaluation engine.
The fintech was based in 2019 by Jeffrey Liu and Justin Louie, who exited from their earlier startup, health market GuavaPass, when it was acquired by ClassPass. Jenfi’s “progress capital as a service” mannequin was developed after the 2 realized that on-line enterprise homeowners, like e-commerce sellers, SaaS and shopper tech suppliers, usually had bother getting capital to fund their progress bills from conventional monetary establishments.
Jenfi co-founders Jeffrey Liu and Justin Louie
Companies that apply to Jenfi can get financing starting from $10,000 to $1 million to spend on advertising, stock and progress campaigns. Liu instructed TechCrunch that mixture gross sales generated by corporations in Jenfi’s portfolio is now greater than $150 million.
Selections about what companies to lend to are made with Jenfi’s proprietary threat evaluation engine, which integrates into knowledge sources like accounting software program, cost gateways, e-commerce platforms, on-line marketplaces and digital promoting. This lets Jenfi constantly monitor its debtors’ enterprise exercise, together with income progress and advertising return on funding.
As Jenfi grows, it’s including extra native market knowledge sources, together with promoting administration platform Haravan and POS administration software program KiotViet in Vietnam, and virtually all banks in Singapore, Vietnam and Indonesia.
Jenfi’s proprietary threat engine is among the principal methods it differentiates from different corporations providing revenue-based financing to digital-native companies, stated Liu, as a result of it means extra complete assessments of creditworthiness and tailor-made financing options.
Since its Collection A was introduced, Jenfi has deployed its first machine learning-assisted underwriting system, which Liu stated permits it to make quicker underwriting choices, with higher accuracy and fewer human involvement.
Sooner or later, Jenfi will work with artificial knowledge to get a greater understanding of shopper habits and potential future outcomes. The corporate additionally plans to develop a tech platform to permit third-parties to make use of its proprietary scoring fashions in their very own native infrastructure.
One other means Jenfi differentiates from rivals is the flexibleness of its reimbursement plans, stated Liu. They vary from three to 12 months and are designed to versatile, taking the wants of every enterprise in thoughts. Reimbursement quantities are based mostly on a pre-determined share of income, however that varies extensively relying on enterprise kind. For instance, a high-margin software program enterprise could also be granted the next income share share than companies in one other sector.
The whole quantity of charges that an organization pays will depend on the credit score rating generated by its proprietary threat engine. Liu stated charges are clear and aggressive, with no hidden charges or fees.
Jenfi’s plans for the close to future embrace providing progress capital to extra purchasers via using dynamic limits, which could be adjusted based mostly on shopper wants and creditworthiness. It should additionally launch an on-demand financing product to cowl recurring progress capital wants like variable month-to-month advert spend.
In a press release, Headline Asia accomplice Aki Okamoto and principal Jonathan M. Hayashi, stated “We’ve got been constantly conducting analysis on revenue-based financing, and have talked to virtually each single participant on this area in Asia. Jenfi completely stood out to us. Their know-how, product, operation and traction are considerably higher than their friends.”