NEW YORK and RA’ANANA, Israel, July 28, 2021 (GLOBE NEWSWIRE) – On behalf, Inc., a provider of purchase finance solutions for B2B buyers and sellers, today announced $ 19 million in new venture capital funding. The round was led by existing investors MissionOG, Viola Growth, Viola Credit and Vintage Investment Partners. New investors Migdal Insurance and La Maison Partners are also participating in the round table.
In addition, Behalf announced the establishment of a new loan facility totaling up to $ 100 million, provided by funds managed by Management company Ares (“Ares”). The raised capital will allow Behalf to extend the availability of purchase financing to a wider range of B2B merchants and their SME clients, while continuing to expand the capabilities of its industry-leading platform.
“The B2B e-commerce market is ripe for transformation. Merchants recognize the opportunity to generate new revenue by deploying purchase financing, ”said Rob Rosenblatt, CEO of Behalf. “At the same time, small and medium-sized enterprises (SMEs) need to access affordable financing options – an ongoing challenge exacerbated during COVID. Even as the US economy improves, SMEs continue to seek financial assistance to purchase essential supplies, inventory and equipment. Often, they don’t have the required spending capacity on their personal or business credit cards. By offering purchase financing with flexible terms, B2B merchants can increase average order size by up to 50-80% while reducing risk, improving cash flow and increasing operational efficiency.
Behalf’s purchase finance solution gives B2B merchants all the benefits of consumer-focused Buy Now, Pay Later offers, along with capabilities specifically designed for business-to-business commerce, including:
- Transparent payment that dramatically improves the customer experience, drives payment in the same session, and boosts customer loyalty.
- Easy integration with existing point of sale systems, avoiding disruptions that could otherwise impact real-time commerce.
- Incorporation of advanced underwriting and rating models based on large data sets, business history and other predictive metrics to address the increased complexity and risk of SME lending, enabling Behalf to offer a financing when traditional banks are unable to do so.
- The ability to meet the needs of virtually all of the merchant’s business customers – small, medium and large.
- Financing of transactions where the average order value is significantly higher than that of consumer finance offers.
- Share best practices with B2B merchants to enable them to offer different financing options to sell more products.
“We are delighted to invest in the current Behalf cycle,” said Guy Fischer, Deputy Managing Director and Chief Investment Officer of Migdal. “This investment is made from our internal $ 1.5 billion (USD) FinTech fund and is in line with our strategy of investing in FinTech companies that have strong growth potential. To support Behalf’s growth, we are also in discussions with the company about a potential $ 100 million (USD) loan facility. This capital injection should support a steep growth curve for the company.
“We believe there is a great market opportunity for a B2B offering targeting the more complex, real-time financing needs of SMEs,” said Jeffrey Kramer, Partner and ABS Head of Alternative Credit Strategy at Ares Credit. Group. “We are delighted to provide a credit facility that will help the business meet its growth goals. ”
Behalf offers alternative B2B financing solutions tailored for real-time trading across retail, assisted selling and other merchant channels. The solutions allow merchants to outsource their net terms and extensive funding programs, and receive payment the next business day. With Behalf, merchants can dramatically increase the purchasing power of their professional customers without tying up capital or devoting resources to credit and collection activity. Customers can receive Net-30 purchase financing for up to 180 days.
Behalf’s e-commerce finance solution is offered by a range of merchants in the electronics, cell phone resale, business supplies, medical and healthcare, home / hardware, and retail industries. ‘other categories of merchants. To date, Behalf has on-boarded over 19,000 merchants and 95,000 business customers, and has provided over $ 1 billion in financing. For more information visit https://www.behalf.com/.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager providing clients with complementary primary and secondary investment solutions in the asset classes of Credit, Private Equity, Real Estate. and infrastructure. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By working with our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2021, including the acquisition of Landmark Partners, completed on June 2, 2021, and the acquisition of Black Creek Group, completed on July 1, 2021, Ares Management’s global platform had approximately $ 239 billion in assets under management with approximately 2,000 employees operating in North America, Europe, Asia-Pacific and the Middle East. For more information, please visit www.aresmgmt.com. Follow Ares on Twitter @Ares_Management.
About Ares Alternative Credit
Ares’ alternative credit strategy focuses on direct lending and investing in assets that generate contractual cash flows and close the gaps in the capital markets between credit, private equity and real estate. Ares Alternative Credit targets investments across the entire capital structure in specialty finance, lender finance, loan portfolios, equipment leasing, structured products, net leasing, cash flow (royalties, licenses, management fees) and other asset-based investments. Co-led by Keith Ashton and Joel Holsinger, Ares Alternative Credit is backed by a highly skilled and tight-knit team of around 40 investment professionals as of March 31, 2021.