Israeli startup ChargeAfter has raised $8 million in its Series A financing round led by Propel Venture Partners and with the participation of PICO Venture Partners.
With offices in Tel Aviv, New York and San Francisco, ChargeAfter has built a global network that enables retailers to match their consumers with credit and financing offers, thus providing customers with access to an integrated network of multiple lenders through a single interface. The platform allows consumers across the credit-rating spectrum to instantly "apply and buy" with point-of-sale financing at a participating merchant.
ChargeAfter CEO Meidad Sharon said, "ChargeAfter provides a single point for retailers to tap into multiple lending partners, for lenders to scale up, and for consumers to access fair and competitive credit options when they need it. Previously, it was too cumbersome for merchants to build and manage various lending partnerships, and with limited options, consumers all too often faced rejection during point-of-sale financing."
Sharon said the company will use the funding to grow their US-based presence with the hiring of sales and marketing industry veterans, R&D developers, a second office located in Sunnyvale, California and to further expand the network of merchants and lenders.
"By leveraging a range of potential lenders, ChargeAfter has already proven successful in increasing acceptance rates," said Jay Reinemann, partner at Propel Venture Partners. "ChargeAfter aligns with our worldview of expanding financial access and building new technology infrastructure. By creating this layer - a distribution system that neither banks nor retailers could build on their own - ChargeAfter is doing for credit what the large card networks once did for transactions."
Merchants in ChargeAfter's network have seen a 30% increase in sales and a 50% increase in average order size. They've also had 85% approval rates for shopper financing - compared to the industry average of 30-50%.
Published by Globes, Israel business news - en.globes.co.il - on May 30, 2019
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