E-commerce loan startup Wayflyer secures $1B deal from Neuberger Berman | GVS

Wayflyer Secures $1 Billion in Capital from Neuberger Berman

Wayflyer, a financing provider for e-commerce startups, has announced that it has secured $1 billion in capital from investment management firm Neuberger Berman. This funding will allow Wayflyer to continue supporting e-commerce businesses by providing them with the necessary capital to thrive in the current economic conditions.

Off-Balance Sheet Program

The funding secured by Wayflyer is described as an “off-balance sheet program.” This means that certain assets and liabilities are not reported on Wayflyer’s balance sheet. By utilizing this program, Wayflyer can maintain a low overall debt-to-equity ratio. Prior to the Neuberger Berman deal, Wayflyer had already secured hundreds of millions in credit to fund its loans.

Purchase of Assets

Over an unspecified period of time, Wayflyer will purchase up to $1 billion of assets from funds managed by Neuberger Berman. This arrangement allows Wayflyer to enjoy more favorable terms, thanks to the off-balance sheet nature of the agreement. This strategic move will provide Wayflyer with the capital firepower needed to ensure the success and growth of its e-commerce customers.

A Growing Demand for Funding Solutions

Wayflyer’s co-founder and CEO, Aidan Corbett, expressed that there is a growing demand for reliable funding solutions, especially in the U.S. market. The $1 billion off-balance sheet purchase of assets from Neuberger Berman demonstrates the power, success, and resilience of Wayflyer’s proposition. With this funding, Wayflyer can continue to support e-commerce businesses and help them thrive in any economic conditions.

A New Spin on Revenue Financing

Wayflyer aims to revolutionize revenue financing for e-commerce merchants by leveraging data analytics and repayments based on a company’s revenue activity. Founded in 2019, Wayflyer has quickly grown and onboarded over 3,000 customers to its platform. The company has deployed over $2 billion in loans, and more than 80% of its customers return for additional financing after completing their initial funding deals.

Data-Driven Decision Making

Wayflyer relies on a range of data sources, including Shopify, Woocommerce, TrustPilot reviews, Google Analytics, and shipping service performance data, to make loan and repayment decisions. This data-driven approach gives Wayflyer a predictive advantage, allowing them to forecast potential financing issues for merchants in the future.

Challenges in the E-commerce Market

The e-commerce market is known for its ups and downs, with an estimated 90% of e-commerce businesses failing within the first 120 days of launch. Poor marketing performance and a lack of search engine visibility are often cited as the main reasons for these failures. Despite these challenges, Wayflyer’s investors remain confident in the company’s approach. In fact, Wayflyer recently renewed a $300 million debt line from J.P. Morgan.

Optimistic Outlook for E-commerce

Neuberger Berman’s managing director, Zhengyuan Lu, expressed optimism about Wayflyer’s model and experienced team. He believes that the global e-commerce sector will continue to grow rapidly in the coming years. Morgan Stanley predicts that the e-commerce sector could reach $5.4 trillion in 2026, up from $3.3 trillion today. This growth is driven by the increasing adoption of e-commerce, which is expected to account for 27% of sales within the next three years.

Fueling Growth in the U.S.

Wayflyer plans to use the proceeds from the $1 billion deal to fuel its growth, particularly in the U.S. market. While the company is not yet profitable, this funding will enable Wayflyer to expand its operations and continue supporting e-commerce businesses in their journey to success.

In conclusion, Wayflyer’s $1 billion capital infusion from Neuberger Berman is a significant milestone for the company. This funding will allow Wayflyer to provide even more support to e-commerce startups and help them navigate the challenges of the market. With a data-driven approach and a focus on customer success, Wayflyer is well-positioned to capitalize on the rapid growth of the e-commerce sector and drive its own expansion in the U.S. and beyond.