E-commerce Financing Revolution
Wayflyer, a Dublin-based startup known for offering financing to e-commerce businesses, has recently announced a groundbreaking $1 billion capital acquisition from Neuberger Berman, a renowned investment management firm. This funding is described as an off-balance sheet program, allowing Wayflyer to maintain certain assets and liabilities off its balance sheet, which likely aids in keeping its debt-to-equity ratio favorable.
The Terms and Implications
Under this arrangement, Wayflyer will, over an unspecified duration, purchase up to $1 billion of assets from funds managed by Neuberger Berman. Due to the off-balance sheet nature of this deal, the terms for Wayflyer are expected to be more advantageous than standard agreements. Aidan Corbett, Wayflyer’s Co-Founder and CEO, emphasized the significance of this deal, stating that it showcases the resilience and success of their model. He believes this will bolster their capacity to support e-commerce clients in various economic conditions.
Wayflyer’s Unique Approach to E-commerce Financing
Founded in 2019 by Aidan Corbett and Jack Pierse, Wayflyer has been on a mission to revolutionize revenue financing for e-commerce merchants. They employ data analytics and base repayments on a company’s revenue activity. By integrating data from platforms like Shopify, Woocommerce, and Google Analytics, Wayflyer can predict potential financing challenges a merchant might face in the future.
Growth and Challenges
Since its inception, Wayflyer has seen substantial growth, with over 3,000 customers onboarded and more than $2 billion in loans deployed. Despite the challenges faced by the e-commerce sector, where an estimated 90% of businesses fail within the first 120 days, Wayflyer continues to thrive. Their success is attributed to their innovative approach and the trust placed in them by investors, as evidenced by their recent deal with J.P. Morgan.
The Future of E-commerce and Wayflyer’s Role
The global e-commerce sector is projected to soar, potentially reaching $5.4 trillion by 2026. With such growth on the horizon, Wayflyer’s recent deal positions them to further fuel their expansion, especially in the U.S. market. Their commitment to supporting e-commerce businesses, combined with their innovative financing model, sets them on a path to play a pivotal role in the future of e-commerce.
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