Credit Key Raises $115M in Debt, Equity to Grow B2B BNPL

B2B payment solutions startup Credit Key raised $115 million in debt and equity funding for its point of sale (POS) eCommerce solution that provides businesses with an instant buy now, pay later (BNPL) function at checkout.

The fresh funds will enable the company to expand the capital it can offer the businesses using its solution, allowing merchants to further extend credit and alternative payment methods to their customers at eCommerce POS, according to a press release emailed to PYMNTS on Thursday (Oct. 20).

Credit Key points to the B2B eCommerce market as being an estimated two times the size of B2C and growing faster but there are fewer options for merchants to extend credit and alternative payment methods.

See also: The Next Trillion Dollar BNPL Play Will Come From Untapped B2B Segment

“While we’re seeing a slowdown across the tech sector, there is still a huge untapped opportunity in B2B e-commerce payments. This e-commerce market is 10-15 years behind B2C on the digital maturity curve but is rapidly catching up,” said Credit Key CEO and founder John Tomich.

The $100 million debt facility was backed by affiliates of Fortress Investment Group. The agreement includes the opportunity to increase the amount to $150 million at the lender’s discretion. The $15 million equity round of funding was led by RedBird Capital, Bonfire Ventures and Greycroft.

Read more: VC’s Next Great Opportunity Lies in ‘Great Unbundling’ of B2B Payments

“Historically, small and mid-sized businesses have been underserved, with less access to capital to purchase necessary equipment, inventory, and supplies. With our new debt facility, our team is dedicated to opening up more opportunities for businesses to access credit and alternative payment options when purchasing online, similar to what many companies have done for consumers,” said Tomich.

Headquartered in Los Angeles and founded by Tomich in 2016, the company has experienced a 4X growth in volume year over year and has increased the number of merchants on its platform.

“Credit Key is a recognized leader and innovator in the fast-growing B2B e-commerce market,” said Fortress Managing Director Josh Bonacci. “We believe this facility will enable Credit Key to bring their solutions to more small and mid-sized businesses, capitalizing on significant and increasing demand for financing solutions in the B2B e-commerce market.”

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