Gynger, a tech-enabled lender, has secured a significant $20 million in Series A funding from PayPal Ventures, as well as further investment from Gradient Ventures, Velvet Sea Ventures, BAG Ventures, and Deciens Capital. The financing brings its total venture capital raised to $31.7 million, and is complemented by a new $100 million debt facility from CIM Community Investment Management.
The company, incubated in June 2021 by mxv Capital founder Mark Ghermezian, offers unsecured lines of credit to businesses for purchasing technology, with an automated decision-making process using artificial intelligence and data analytics. Gynger’s application process typically takes under 10 minutes, and applications are reviewed the next day.
Gynger claims it has seen rapid growth, with a 700% increase in revenue year-over-year. The company has also expanded its customer base, with thousands of payments facilitated through their platform. Clients include major software companies like AWS, Google Cloud, Oracle, and Salesforce.
Ghermezian described Gynger as a “buy now, pay later service for companies purchasing technology,” and mentioned that the company also offers embedded financing opportunities for vendors, providing flexible payment terms that can help accelerate sales.
On the topic of competitors, Ghermezian acknowledged that fintechs like Pipe and Capchase are often mentioned in the same category, but characterized them as primarily offering equity and debt financing solutions, rather than the all-encompassing technology purchasing framework offered by Gynger.
