Parafin and Fullsteam’s Embedded Capital Project Tops $125 Million

Parafin and Fullsteam say their embedded capital partnership has surpassed $125 million.

As the companies noted in a Wednesday (Oct. 8) news release, the partnership between embedded financial services Parafin and payments platform Fullsteam lets small businesses access financing via the Fullsteam ecosystem.

“This milestone reflects the power of embedded finance to drive real business growth,” said Sahill Poddar, co-founder/CEO of Parafin. “By integrating capital access into the platforms businesses already use, we’re delivering access to fast, flexible funding when and where merchants need it.”

Launched in 2022, the program has expanded to support several of Fullsteam’s business units throughout industries like salons, party rentals, limo services, and breweries. According to the release, these merchants have embraced the program, with 70% who received capital applying for repeat financing.

“Parafin’s AI-powered underwriting model and top-up offer system have been key to this success, ensuring businesses continue to access capital as they grow,” the release added.

In other working capital news, PYMNTS wrote last week about the way working capital innovation is at the center of a shift in how companies fund their sourcing decisions.

“Traditionally, working capital optimization was viewed as the enterprise chief financial officer’s domain as an exercise in shortening receivables, stretching payables and managing inventory,” the report said. “Today, it is emerging as a cross-functional lever for mid-sized firms that can connect procurement strategy, trade compliance and global sourcing decisions.”

When procurement leaders gain visibility into the financing options available, they can be more aggressive in reconfiguring supplier networks in response to tariff shifts, PYMNTS added. Meanwhile, finance teams can enjoy better forecasts and risk management by understanding the tariff-driven volatility behind sourcing costs.

“When SMBs find it hard to breathe, working capital innovation can be a lifeline,” the report said.

Also on this front, PYMNTS spoke Wednesday with Vikas Mehta, CFO at Remitly, on the role of working capital.

“Working capital efficiency is the top-most important thing. In our business, treasury and cash flow functions aren’t secondary. That’s what we do,” Mehta said during a conversation hosted by PYMNTS CEO Karen Webster.

The transformation of working capital into a core driver of growth strategies can be seen across global payments, where liquidity and funding costs are critical to the customer experience.

Remitly’s own business model, for instance, requires instant payouts to recipients around the globe. The company needs to pre-fund many of those transactions, leading to complex balance-sheet gymnastics: deploy enough funds to ensure a seamless customer experience, but not so much money that cash sits idle.