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Revenue-based financing startup Bloom raised £300M

May 26, 2022
Largest revenue-based financing funding rounds
Data: Crunchbase; Chart: Jared Whalen/Axios

Revenue-based financing startup Bloom raised £300 million ($377 million) in funding led by Credo Capital and Fortress Investment Group, making it one of the most well-capitalized entrants in the buzzy new space.

Why it matters: More than $1 billion has poured into revenue-based and alternative financing firms over the past year, which gives SaaS and e-commerce companies new ways access to non-dilutive capital to fund their businesses.

How it works: Bloom provides revenue-based financing to e-commerce companies, offering a pay-as-you-go pricing model that is designed to help lower fees for merchants.

  • That sets it apart a bit from firms like Pipe or Capchase, which primarily lend against already booked sales or predictable recurring revenue. Bloom competes more with the likes of Clearco and Wayflyer.

What we’re watching: With global markets in turmoil, providing access to working capital could become even more important to businesses amid a flight to safety in more traditional venture and financing sectors.

  • And that could create an opportunity for Bloom and businesses like it to quickly expand and gain customers other firms are reluctant to finance.
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