Many Southeast Asian digital companies run into obstacles when in search of early-stage progress financing. They won’t need to promote fairness of their firm, however typically battle to safe working capital loans from conventional monetary establishments. That’s the place Singapore-based Jenfi is available in, offering revenue-based financing of as much as $500,000 with versatile compensation plans that co-founder and chief government officer Jeffrey Liu refers to as “progress capital as a product.”
Whereas revenue-based financing is gaining traction in many other markets, Liu instructed TechCrunch that Singapore-based Jenfi is the primary firm of its type centered on Southeast Asia. The startup introduced immediately that it has raised a $6.3 million Sequence A led by Monk’s Hill Ventures. Individuals included Korea Funding Companions and Golden Equator Capital, 8VC, ICU Ventures and Taurus Ventures. The corporate beforehand raised $25 million in debt financing from San Francisco-based Arc Labs.
Jenfi works primarily with “digital-native” firms, together with SaaS suppliers and e-commerce sellers. A few of its shoppers embrace Tier One Leisure, Pay With Cut up and Homebase. Jenfi hasn’t disclosed how a lot non-dilutive financing it’s supplied to this point, however its purpose is to deploy $15 million by July 2022. It claims that the common Jenfi buyer skilled compounded gross sales progress of about 26.5% over three months, 60% over six months and 156% over twelve months.
The combination gross sales of firms in its portfolio is at the moment greater than $30 million, and Jenfi expects that the capital it has already deployed will assist them generate $47 million in gross sales, or a 156% enhance by July 2021.
Liu launched Jenfi with Justin Louie in 2019, after seeing how conventional monetary establishments have been lagging behind Southeast Asia’s digital boom. The 2 beforehand based GuavaPass, the health studio membership platform that was acquired by ClassPass in 2019. Jenfi’s creation was motivated by a few of the challenges Liu and Louie confronted whereas financing a high-growth startup centered on Asian markets.
Jenfi’s software course of is totally on-line and in some instances, firms have obtained financing in lower than 24 hours, although it sometimes takes a number of days. That is one other profit over conventional working capital loans or non-public fairness financing, which may take months to finish, making it troublesome for firms to reply rapidly to income progress alternatives. For instance, an e-commerce firm may have fast working capital to buy extra stock if it immediately will get a whole lot of demand for a sure product.
A few of Jenfi’s Sequence A may even be used to develop extra integrations for its proprietary danger evaluation engine, which analyzes how effectively firms use their progress spending. At the moment, it will possibly faucet into info from financial institution accounts; software program like Xero or Quickbooks; fee gateways together with Stripe and Braintree; e-commerce platforms like Shopify, Shopee and Lazada; and Fb Advertisements and Google Advertisements.
As an alternative of mounted installment compensation plans, Jenfi provides firms extra versatile goal compensation plans and prices them a flat price primarily based on the quantity of financing they obtained, their month-to-month gross sales and what number of months it’ll take to pay again the mortgage. Jenfi continues analyzing the information sources supplied by firms, so it will possibly inform if a shopper probably wants extra capital or an adjustment to their compensation phrases.
In the end, Jenfi’s plan to maneuver past financing and likewise present instruments to assist companies. “We see ourselves as companions in our portfolio firms’ progress,” stated Liu.
Since Jenfi faucets into a mixture of information sources—together with financial institution accounts, accounting software program and digital promoting platforms, it will possibly use that very same info to determine alternatives. A part of Jenfi’s Sequence A funding can be used to develop automated analytics. For instance, the platform would be capable to determine an promoting alternative with excessive ROI on Google Advertisements and notify the corporate, asking in the event that they need to apply for extra capital to finance the marketing campaign.