[ad_1]
Haibeam, a startup that provides banking features, credit and cash flow insights to e-commerce customers, announced today that it has raised $10 million in debt. TriplePoint ostensibly to expand the reach of its digital product portfolio.
Co-founders Samir Shergill (formerly of Microsoft, McKinsey and AppNexus) and Gautam Gupta (formerly of Shopify, Venmo and Alloy) have spent years working with e-commerce companies to help them scale. Together, they conclude that e-commerce is inherently capital-intensive and low-margin as online brands build, increasingly aided by technology and marketing solutions, to maximize revenue growth. They believed that the missing link in building a sustainable business was effective cash management and responsible use of credit.
“Having witnessed first-hand the frustrations with legacy banks, accounting firms and predatory cash advances, we decided to build an e-commerce banking platform that enables brand operators to manage cash flow in real-time, access fair and transparent credit, and grow profitably,” said Shergill.
To that end, Highbeam — which typically works with “founder-led” companies with revenues of more than $1 million — offers a variety of financial services and tools tailored to the needs of e-commerce brands. Using the platform, customers can create bank accounts, take advantage of free money transfers and earn 2% cash back on all purchases with a debit card. (Highbeam works with Blue Ridge Bank to provide banking and debit card and The Currency Cloud payment services.) Through dashboards, Highbeam provides insights and forecasts on business expenses (such as inventory, hiring, and sales purchases), and automatically allocates revenue using algorithms. And spend transactions.
The measurements go deep. Highbeam’s “vendor view” gives brands a real-time overview of where their money is going. Tracking cost analysis gives customers a chance to monitor costs before they become too overwhelming, as vendor costs change.
Hybeam Analytics Dashboard for E-Commerce.
Highbeam’s credit product is a flat-rate, income-based line of credit that allows customers to draw and pay off loans on demand. “They argue that it makes a big difference,” Shergill said.Fair and flexible” fee-based merchant cash advances, which tend to be more expensive and rigid in their terms.
For context, Hybem’s rival Wayflier uses a similar approach to e-commerce lending — using analytics and sending merchants cash to make purchases or investments. Merchants repay the loan using a percentage of the income until the money is repaid; Businesses are using their income to get financing, so it means income-based financing.
The advantage, for companies like Highbeam and Wayfler, is that retailers get paid a percentage of their sales. If they have a slow month, they pay less.
“For many brands, today’s economic headwinds have created significant uncertainty in sales and inventory planning,” said Shergill. “Highbeam’s e-commerce focus helps brands establish strong financial fundamentals by making effective financial planning and cost management easier.”
Hyb also sees competition from many fintech providers, including merchant cash providers. Shopify Capital (as well as the aforementioned Wayflyer, Clearco and Onramp Funds); Outsource management and accounting services such as Quickbooks; and corporate card firms such as Ramp and Brakes. Power hungry? Maybe – especially for a company with only $7 million in capital under its belt. (Highbeam raised $7 million from Mayfield and Firstmark last spring.) But Shergill insists that Highbeam is growing at a fast clip, growing 30% month-over-month and showing annual cash flow in the hundreds of millions.
Certainly, Highbeam’s market — e-commerce — shows no sign of slowing down. In the year Statista estimates that e-commerce revenue in the U.S. will reach $905 billion in 2022 and will reach $1.78 trillion in 2027. Online marketing remains one of the strongest and fastest growing digital sectors, generating millions of new businesses each year. ; According to a separate Statista report, unicorn e-commerce startups will create an industry worth nearly $114 billion by 2021.
“We’ve grown primarily through customer referrals, but now we’re growing hiring in our sales and customer success functions.” Shergill said. “Highbeam’s core value proposition is helping brands make smarter decisions around profitability and cash flow, which is a key focus for everyone in this area. Highbeam is well positioned and funded to provide brands with the tools they need to grow sustainably and profitably.
But I have to point out that when asked why Shergill Highbeam chose to raise debt against equity, he did not disclose the size of Highbeam’s customer base. They also refrained from even providing an estimate of the company’s annual recurring revenue. Do whatever you want.
[ad_2]
Source link
