(MENAFN- Khaleej Times) Salaryo, a fintech platform for US freelancers and startups, has announced that it has raised a total of $5.8 million in funding from Dubai-based private equity fund Ken Investments, Variant Investments, Techstars Ventures, and Michael Ullmann's investment group, bringing its total funding to $12 million.
The majority of the round was funded earlier this year and the company will use the funds to propel the growth of its small business lending activity and to launch new business banking products in 2021.
Salaryo provides fully digital business term loans and lines of credit for small businesses. The company has successfully provided financing to hundreds of businesses since its foundation in 2017. During the Covid-19 pandemic, the company accelerated its growth by offering cash flow relief to small businesses in selected business categories, processing over $60 Million in loan applications year to date.
"This investment round propels Salaryo's evolution from a niche player, into a FinTech banking partner for small businesses, at a time that small business owners need us the most"said Yair Levy, CEO and co-founder of Salaryo."This year we have expanded our offering with business term loans, providing cash flow flexibility and relief during Covid-19. Our next big step in the materialization of our vision to be the Bank of the Future of Work is planned for next year, when we launch a suite of digital banking products that are designed for cash flow volatility and income uncertainty."
Levy also addressed the fact that for the first time, an Emirati fund participated in the funding round.
"The announcement by the leaders of the United Arab Emirates and Israel about a peace treaty being negotiated between the two countries, has helped to remove technical barriers that have so far delayed the completion of the investment transaction" added Levy. "This pioneer investment pairs Israeli technological innovation with the UAE's financial expertise and international outreach. The combination of both has endless potential. I look forward to more transactions like this in the near future."
Salaryo's lending technology features a fully automated experience, featuring KYC (Know Your Client), financial and professional analysis, payment processing and e-signatures, to make a decision in minutes. Once approved, Salaryo sends funds to the business within 24 hours.
"It took both sides a while to close this investment," said Kentaro Willam, CEO and manager of Ken Investments. "Salaryo tackles a large, fast-growing market opportunity of US small businesses."
"Covid-19 has accelerated the digitization of financial services. FinTechs such as Salaryo provide opportunities to generate alternative return streams in a dynamic environment," said Curt Fintel, Principal at Variant Investments. "Salaryo's team possesses financial acumen and advanced technology that give Variant an edge in getting exposure to unconventional income-generating assets in the specialty finance category."
The Covid-19 pandemic had a negative effect on the small business sector, with public health regulations causing the temporary closure and steep reduction of activity for millions of small businesses across the U.S and worldwide. Since early March 2020, Salaryo has processed over $60 million in loan applications using its technological platform, offering relief to hundreds of U.S small business owners.
This financing round is composed of both debt and equity financing reaching a total of $5.8 million. US-based fund Variant Investments provided the debt financing, while Dubai-based Ken Investments and US-based Techstars Ventures participated in the equity.
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