Wayflyer will reportedly use the additional debt facility to support further origination, enabling it to quickly provide funding to eCommerce businesses helping them fuel growth, improve cashflow and drive sales. It will also allow Wayflyer to improve liquidity and support its goal to offer the most competitive rates to its customers, in the US, and Western Europe.
Wayflyer plans to use the additional debt facility to fuel its service portfolio that builds financing for ecommerce businesses. Improved liquidity triggered by the investment allows Wayflyer to adjust rates and attract more customers in its primary markets, US and Western Europe.
This strategy is supported, according to the company press release, by the estimation that the ecommerce industry revenue is expected to reach USD 6.2 trillion by 2023 and the demand for affordable financing continues is expected to grow even further than it grew so far, in the last two years.
In May 2022, Wayflyer secured and began deploying USD 300 million in debt financing from JP Morgan. At the time, the company stated that the funds would reduce Wayflyer’s cost of capital, emphasising again its push for more competitive rates for ecommerce businesses across the US, Western Europe, and Australia.
The news came shortly after Wayflyer announced its Series B round in February 2022. The all-equity round, co-led by DST Global and QED Investors, with JP Morgan as a participant, saw Wayflyer’s valuation hit USD 1.6 billion after USD 150 million was raised. Along with the USD 76 million equity round in May 2021, the startup also secured USD 100 million in debt to provide financing.
Ecommerce financing is a funding solution that provides business loans to ecommerce businesses. Lending facilities with a focus on online retailers are meant to help online sellers grow, cover marketing expenses, and increase sales. The primary usage of ecommerce financing is for online sellers to stabilise the cash flow and to cope with payments obligations.
Wayflyer focuses primarily on use-cases such as inventory funding, marketing funding, and analytics support. Their strategy is supported, according to the company press release, by the estimation that the ecommerce industry revenue is expected to reach USD 6.2 trillion by 2023 and the demand for affordable financing continues is expected to grow even further than it grew so far, in the last two years.
Shopify data backs up these claims, global ecommerce sales are expected to total USD 5.5 trillion worldwide in 2022. This number is expected to continue growing over the next few years, proving that ecommerce is becoming an increasingly lucrative option for businesses. In this context, ecommerce financing is a natural growth by-product of this trend.
Founded in September 2019, Wayflyer provides a range of financing and analytics solutions that improve cash flow, drive sales and optimize supply chains.
Through its offering of non-dilutive, unsecured capital, eligible businesses are given the flexibility to secure advertising space and inventory. The company also offers an analytics platform that analyses marketing performance on a daily basis, along with a one-stop shop for the working capital needed to scale and data-driven insight to spend their capital.
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