# Parafin

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/parafin

- Industry: Software
- Headquarters: San Francisco, US
- Website: www.parafin.com/
- Total disclosed funding: $186M
- Latest round: Series C (Dec 17, 2024)
- Investors on record: 7

## About

Based in San Francisco, US, Parafin, Inc. focuses on delivering embedded financial solutions that facilitate improved cash flow management for businesses across multiple sectors.Parafin, Inc. was founded in 2020 in San Francisco, US, and operates as a financial technology company providing embedded finance services. The company has completed 9 deals, with its most recent funding round on September 29, 2025, where it raised USD 360.00 mn from Cross River Bank. The firm has not undergone significant pivots in its business strategy since inception. Sahill Poddar and Vineet Goel are the founders, with Sahill Poddar currently serving as the CEO.Parafin specializes in providing embedded financial solutions designed to enhance the operational capabilities of platforms across various industries. Their primary offerings include fast and flexible working capital, spend management solutions, and installment payment options tailored for business customers. These products aim to simplify access to financing and improve cash flow for independent software vendors and merchants, allowing them to manage their operations more effectively. Parafin's solutions leverage AI-powered underwriting models, which are continuously trained on extensive data sets, thus ensuring high approval rates for financing applications. The company serves a diverse clientele, including marketplaces and vertical SaaS platforms, primarily in the United States, but also extends to other regions where their partners operate.Parafin generates revenue through a structured transaction model that involves partnerships with various platforms, offering embedded financial products to their existing customer bases. Clients can access capital, spend management tools, and payment installment options, which are integrated into the platforms they use for their daily business operations. The firm facilitates revenue generation through transaction fees associated with loan disbursements and spend management services, as well as potential cashback incentives linked to card purchases. While specific pricing plans for their products are not disclosed, the primary income streams are derived from the fees charged for these financial services and the revenue generated from partnerships with established platforms.In September 2025, Parafin, Inc. raised USD 360 mn in venture funding from Cross River Bank. The company plans to use this funding to scale its embedded finance platform and address the growing funding needs of small businesses. Parafin aims to launch new products and expand its services into additional markets, focusing on enhancing its offerings to better serve its clients. Specific details regarding the new products or targeted geographic regions are yet to be disclosed.

## Funding rounds

- Series C, Dec 17, 2024, $92M — Redpoint Ventures, GIC, Thrive Capital, Ribbit Capital, Notable Capital
- Series B, Aug 2, 2022, $60M — GIC, Thrive Capital, Ribbit Capital
- Series A, Sep 29, 2021, $30M — Thrive Capital, Ribbit Capital
- Seed, Oct 1, 2020, $4M — Index Ventures, SV Angel, Ribbit Capital
- Seed, May 18, 2020 — SV Angel

## Investors

- SV Angel (https://capitalatlas.ai/funds/sv-angel) — Seed
- Index Ventures (https://capitalatlas.ai/funds/index-ventures) — Seed
- Ribbit Capital (https://capitalatlas.ai/funds/ribbit-capital) — Seed, Series A, Series B, Series C
- Thrive Capital (https://capitalatlas.ai/funds/thrive-capital) — Series A, Series B, Series C
- GIC — Series B, Series C
- Redpoint Ventures (https://capitalatlas.ai/funds/redpoint-ventures) — Series C
- Notable Capital (https://capitalatlas.ai/funds/notable-capital) — Series C