Exclusive: Bridge launches $500M supplier-lending fund
Illustration: Sarah Grillo/Axios
Bridge, which provides purchase-order financing to retail suppliers, is launching a $500 million direct-lending fund, CEO Rohit Mathur tells Axios Pro exclusively.
Why it matters: Suppliers that land a large order from a major retailer must cover production, packaging and freight before the retailer's payment arrives.
Zoom in: The program will initially serve Walmart and Sam's Club suppliers. Bridge says it can fund up to 100% of a brand's production costs on expected or confirmed orders.
How it works: Bridge underwrites the supplier, purchase order and retailer relationship, then structures repayment around when the retailer pays.
- The company will originate and service the loans, while LuminArx Capital Management, a global alternative investment manager, provides the capital.
Between the lines: Mathur says CPG borrowers typically receive credit lines of $500,000 to $2.5 million, with individual draws generally running for three to five months.
- That puts Bridge above the roughly $50,000 to $100,000 loans offered by embedded lenders through e-commerce platforms.
- Pricing is usually 12% to 15% on an annualized basis, depending on credit risk, Mathur says.
Context: Mathur and co-founder Harte Thompson started Bridge inside Citibank, then spun it out in 2023.
- The company initially operated as a marketplace where outside lenders could review and bid on transactions.
- Bridge says it has worked with Walmart, Sam's Club, Dollar General, Best Buy and Chipotle. It also finances hospitality developers through partnerships with hotel brands.
By the numbers: Bridge says it has since deployed more than $800 million and facilitated financing for hundreds of businesses.
- Mathur says much of that volume came through the marketplace model or correspondent lenders, rather than the new direct channel.
Reality check: The direct-lending fund will test whether it can scale its underwriting model with dedicated private-credit capital.
- Mathur says Bridge has not had a loss to date, but he attributes that partly to the company's youth.
