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Jenfy, a “growth-capital-as-a-service” platform, can provide revenue-based funding to online businesses in as little as a day. The Singapore-based startup announced today that it has raised $6.6 million in pre-Series B funding led by Title Asia. The participation comes from returning investor Monk Hill Ventures, which raised Genfin’s Series A two years ago, ICU Ventures, Granite Oak, Korea Investment Partners and Golden Equator Capital and Atlas Ventures.
Since its inception four years ago, Jenfi has deployed more than $25 million in non-recurring capital to 600 companies. Its clients include Gushcloud, Ralali, Hello Health, Lamer Fashion, Buy2sell and Mystifly. The new funding will be used to grow its customer base in Singapore, Vietnam and Indonesia and expand into new markets in Southeast Asia such as Malaysia, the Philippines and Thailand. It also enables Jenfi to leverage its credit book and risk assessment capabilities, including a proprietary risk assessment engine.
Fintech in 2010 It was founded in 2019 by Jeffrey Liu and Justin Lui, after their previous startup, fitness marketplace Guapass, was acquired by ClassPass. Jenfy’s “Growth Capital as a Service” model was created after the duo realized that online business owners such as e-commerce sellers, SaaS and consumer technology providers often had difficulty getting capital from traditional financial institutions to cover their growth costs.
Genfi co-founders Jeffrey Liu and Justin Louis
Businesses applying to GenFi can receive funding ranging from $10,000 to $1 million to spend on marketing, inventory and development campaigns. Liu told TechCrunch that the total sales generated by companies in Genfy’s portfolio is now more than $150 million.
Decisions about what businesses to lend to are made by Genfy’s proprietary risk assessment engine, which integrates data sources such as accounting software, payment gateways, e-commerce platforms, online marketplaces and digital advertising. This allows Jenfi to continuously monitor borrowers’ business activities, including revenue growth and investment returns.
As Jenfi grows, it is adding more local market data sources, including vendor management platform Haravan and POS management software Kyotviet in Vietnam and banks in Singapore, Vietnam and Indonesia.
Genfi’s proprietary risk engine is one of the main ways it differentiates itself from companies offering income-based financing to digital native businesses, Liu said, because it means more comprehensive assessments of creditworthiness and customized financing solutions.
Since the announcement of the Series A, GenFi has deployed the first machine-learning-powered captioning system, which Liu said allows it to make faster captioning decisions with greater accuracy and human involvement.
In the future, Jenfy will work with processed data to gain a better understanding of customer behavior and potential future outcomes. The company plans to develop a technology platform that allows third parties to use proprietary point-of-sale models in their own native infrastructure.
Another way GenFi differentiates itself from its competitors is the flexibility of its payment plans, Liu said. They range from three to twelve months and are designed to be flexible, taking into account the needs of each business. Payment amounts are based on a predetermined percentage of revenue, but that varies widely by business type. For example, a high-margin software business may be given a higher percentage of revenue than businesses in other sectors.
The total amount a company pays depends on the credit score generated by the proprietary risk engine. Liu’s prices are transparent and competitive, with no hidden fees or charges.
Genfi’s recent plans include providing growth capital to multiple clients using flexible limits, which can be adjusted based on client needs and creditworthiness. An on-demand financing product is launched to cover recurring growth capital needs such as variable monthly advertising costs.
In a statement, Headline Asia Partner Aki Okamoto and Principal Jonathan M. Hayashi said, “We have been continuously researching income-based financing, and have spoken with all the players in this field. Jennifer absolutely showed up for us. Their technology, product, performance and usability are significantly better than their peers.
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