New York-based Capchase, a fintech platform that offers non-dilutive capital for recurring-revenue SaaS companies, announced on Thursday that it is partnering with Xero, a New Zealand-based global cloud-based accounting software platform for small businesses, to help small businesses in the UK access growth capital.
UK’s small business customers can now apply for growth capital via the Capchase app in the Xero App Store. The financial data will automatically be synced between Capchase and Xero, streamlining the approval process.
Capchase says that the companies can receive funding 48 hours after they first apply.
The announcement comes a couple of months after raising $400M in additional debt financing to provide committed capital for current and future Capchase customers and diversify current product offerings. Capchase also announced integration with financial infrastructure platform Stripe and finance automation platform Ramp this year.
The company also launched Capchase Analytics, a tool that will allow founders access to real-time business metrics to make critical decisions and thereby helping SaaS businesses grow faster.
The tool will present customers who provide their banking, accounting, and subscription management data with a dashboard that has up-to-date financial metrics. The dashboard also showcases essential business information in real-time, including monthly recurring revenue, customer retention, and burn rate.
The company says it is set to deploy more than $1B to SaaS companies in the next few years to extend its runway and avoid a down round in an uncertain market.
In March, the company also raised $80M (nearly €72.82M) in a Series B round of funding.
Capchase: What you need to know
Founded in 2020 by Ignacio Moreno, Luis Basagoiti, Miguel Fernandez, and Przemek Gotfryd, Capchase aims to help founders and CFOs grow their businesses faster through non-dilutive capital, market insights, and community support. The company has made $2B+ available to over 3,000 businesses and partners, and added 5,000+ months of runway to the SaaS industry.
Earlier this year, Capchase expanded its services to the Netherlands, Belgium, Finland, Sweden, and Denmark, and launched its new European headquarters in London.
Henrik Grim, GM of Europe at Capchase, says, “This integration is a huge step forward for alternative finance in the UK. Thousands of small businesses could now gain fast access to capital.
“With other funding sources drying up and increasing economic uncertainty, well-run businesses can find it difficult to get the financing they need to keep growing. Capchase provides a great option for these companies, and now, by working with Xero, we have streamlined the process to save business owners one of their most valuable commodities – time,” he adds.
Xero: What you need to know
Based out of Wellington, New Zealand, Xero is a cloud-based accounting software platform for small businesses with over 3M subscribers globally.
Through Xero, small business owners and their advisors can access real-time financial data anytime, anywhere, and on any device. The platform offers an ecosystem of over 1,000 third-party apps and 300 plus connections to banks and other financial partners.
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