The sale comes after Kabbage stopped originating loans in March 2020 for its Celtic Bank partnership as COVID-19 shut down businesses across the US. The fintech furloughed a number of its roughly 600 employees and stopped handling new loans for its small-business clients. Kabbage then pivoted to becoming a lender for the Small Business Administration’s Paycheck Protection Program, which provides loans to small businesses struggling during the pandemic.
Kabbage, which is backed by investors including SoftBank and Reverence Capital Partners, could sell for as much as USD 850 million, including retention payments. The company has raised nearly USD 500 million in equity capital and over USD 2 billion in debt funding. This includes a USD 250 million investment from SoftBank in 2017 that valued the company at $1.2 billion.
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