E-commerce financing provider Wayflyer has successfully secured $1 billion in capital from investment management firm Neuberger Berman. This funding is designed as an “off-balance sheet program,” allowing Wayflyer to retain certain assets and liabilities off its balance sheet, potentially maintaining a favorable debt-to-equity ratio. Wayflyer, prior to this deal, had secured significant credit lines to fund its loans.
Over an unspecified period, Wayflyer will acquire up to $1 billion worth of assets from Neuberger Berman-managed funds. Due to the off-balance sheet nature of the arrangement, the terms for Wayflyer are expected to be more favorable than they would have been otherwise.
E-commerce Financing Focus: Wayflyer specializes in providing revenue financing to e-commerce merchants. The loans, typically ranging from $300,000 to $400,000, cover expenses such as inventory purchases and shipping costs for e-commerce businesses.
Data-Driven Decision Making: Wayflyer leverages data analytics, including information from platforms like Shopify, Woocommerce, TrustPilot, Google Analytics, and shipping service performance data, to make lending and repayment decisions. This data-driven approach allows Wayflyer to predict potential financing issues for its customers.
Impressive Growth: Since its founding in 2019, Wayflyer has onboarded over 3,000 customers and deployed more than $2 billion in loans. Over 80% of its customers return for additional financing after their initial funding deals.
Positive Outlook for E-commerce: Despite the challenges faced by e-commerce businesses, such as high failure rates and intense competition, investors remain optimistic about Wayflyer’s approach. The global e-commerce sector is expected to continue growing rapidly, potentially reaching $5.4 trillion by 2026, up from $3.3 trillion today.
Utilizing Funds: Wayflyer plans to use the proceeds from this $1 billion deal to fuel its growth, particularly in the United States, as it continues to expand its services in the e-commerce financing sector.