Neuberger Berman's $1B Investment In Wayflyer Set To Transform E-commerce Lending

E-commerce revenue-based finance provider, Wayflyer announced that it has signed a $1 billion funding deal with investment firm, Neuberger Berman NBXG. The funding, which is an off-balance sheet (OBS) program, will support Wayflyer’s growth and expand its financing solutions.

Wayflyer customers usually take out loans between $300,000 to $400,000 for inventory purchases, shipping costs, and other big-ticket items required for running an e-commerce business.

Agreement Details
The agreement involves a potential acquisition of up to $1 billion in assets from funds administered by Neuberger Berman, with no specified timeframe for the transaction. Irish-based Wayflyer will use the capital to pay down some of the debt they raised earlier. With the OBS arrangement, Wayflyer is allowed to keep certain assets and liabilities from being reported on its balance sheet.

“As e-commerce businesses seek to navigate growth amid the current economic conditions, we’re seeing a growing demand for our reliable funding solutions, especially in the U.S. market,” Wayflyer co-founder and CEO Aidan Corbett commented.

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What Does The Deal Signify?
Wayflyer provides financing to e-commerce startups in exchange for a portion of their future revenue. With the e-commerce sector rapidly growing, the need for specialized financing solutions is highly critical.

This partnership of Wayflyer with Neuberger Berman highlights the beginning of a new chapter in e-commerce growth and innovation. It will assist Wayflyer in supporting a greater number of businesses in the e-commerce sector, thereby driving growth.

Wayflyer's Financial Moves
In June 2023, Wayflyer renewed its $300 million debt financing with J.P Morgan, enabling it to support e-commerce merchants. The original credit line agreement was made in 2022. Meanwhile, in November 2022 the company reduced its global workforce by 40%.

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