Bread Raises Serious Dough for E-Commerce Installment Payments
Bread, a fintech startup that builds installment payment solutions for online merchants, has completed $126 million of equity and debt financing.
Menlo Ventures led the equity round, with participation from Bessemer Venture Partners, RRE Ventures and others.
As part of the round, Mark Siegel, Menlo’s managing partner, will be joining Bread’s board of directors. The debt facility was provided by Victory Park Capital.
Bread says its white-label technology improves conversion and raises average order value for retailers. For instance, an online furniture store could use Bread’s technology to offer its consumers the ability to pay for a sofa in “easy-to-understand” monthly installments.
The technology is “not just a branded checkout button,” according to the company, which says it offers tailored options that fit a merchant’s specific product set.
“We are building online-focused, next-generation solutions,” said co-founder and CEO Josh Abramowitz. “Current private-label options were built for an offline world. They don’t speak the interactive language of e-commerce and don’t work well on the web. Bread’s technology offers a different type of solution. It is optimized for the web, and designed to bring purchase finance into the online era.”
The company has grown its volume by five times over the past year as bigger merchants have begun to use its systems, Bread reports.
The new equity capital will help Bread expand its portfolio of merchant partners, as well as continue to grow its engineering team “to build innovative solutions to further improve the product and consumer experience.”
Bread loans are made by Cross River Bank, a New Jersey state-chartered bank.