Here's a new corporate card startup, backed by $157M in equity, debt, going after Brex, Ramp
Summary
Parker, a startup offering a corporate credit card for e-commerce businesses, emerged from stealth Thursday with $157 million in equity and debt funding, much of which closed in 2022.The company touts itself as the first charge card for e-commerce with raised limits that are on average 10 to 20 times higher than traditional business credit cards, like CapitalOne, American Express and Brex.Co-founders Yacine Sibous and Milan Ray were more into computing before they kind of fell into the world of e-commerce. The company focuses on the middle market companies doing $3 million to $100 million in annual sales.Parkers secret sauce is its underwriting process, which assesses cash flow so that e-commerce brands can have credit limits that make sense for their business; for example, up to $10 million in credit, Sibous said.In addition, the company offers payment terms that Sibous said make sense in the context of e-commerce think net terms on every transaction. That helps these brands a ton with cash flow.Sibous believes Parker has a good opportunity to compete in the crowded credit card space that includes other venture-backed companies like Moss and Emburse. The warehouse debt facility also includes an uncommitted option to upsize by $50 million.Parker has identified an opportunity as a massive segment of e-commerce has been underserved by traditional banks, startup cards and merchant cash advance companies, said Andrew McCormack of Valar Ventures, in a written statement. We want to build the best-in-class card experience and solve the problem space of cash flow, management and profitability.
