The software-as-a-service (SaaS) industry's revenue acceleration platform, Capchase, has obtained a €105 million (US$113.9 million) credit facility warehouse headed by Deutsche Bank.

With this recent transaction, it has already raised over US$1 billion in combined debt and stock since its founding just four years ago in 2020.

Capchase intends to introduce more tools to enable flexible financing for SaaS startups around Europe after securing its most recent investment.

Capchase financial infusion: The significance of additional funds

The timing of the new money is crucial for Capchase, since non-dilutive funding activity at European companies increased by over 50% in 2023 compared to 2022, while venture capital funding decreased by 45% across the continent during the same period.

Smaller, more frequent fundraising rounds did, in fact, gain popularity during the post-COVID-19 startup funding boom, which broke many venture capital records and witnessed US$210 billion in fintech funding in 2021 and early 2022, according to a KPMG research.

With its most recent capital infusion, Capchase is responding to the latest wave of funding activity by increasing its support for SaaS companies in the UK and Europe via Capchase Grow, a platform that provides qualified businesses with non-dilutive financing, enabling startups to promote business growth without giving up equity.

"We are committed to being the trusted finance and revenue partner for software companies, and this partnership ensures a long-lasting presence in key geographies around the globe," says Ayaas Bhamla, Vice President of Capital Markets at Capchase, about the company's most recent fundraising.

"Having Deutsche Bank as a worldwide financial partner strengthens our platform's founders' foundation and advances our purpose. By collaborating with a bank of this kind, Capchase is able to give our clients the resources and support they require to succeed."

Why do SaaS companies go with Capchase?

There are more reasons why SaaS firms are using Capchase besides its non-dilutive financing choices. Capchase's primary product line consists of Grow and Pay, but it also provides Capchase Collect and Capchase Infra, which were introduced in December 2023 and April 2024, respectively.

The self-service Collect solution from the revenue acceleration platform was introduced to assist SaaS enterprises in accelerating invoice collections and lowering the quantity of past-due bills. With the goal of helping banks and non-bank lenders accelerate their digital roadmap, Infra is a new suite of technologies.

The pace of Capchase's acceleration since its foundation in 2020 is demonstrated by these new product launches.

With its headquarters located in New York, Capchase has collaborated with more than 4,000 companies and partners thus far, and it now has operations in ten countries across North America and Europe.

Grow, the company's financing solution, has helped the SaaS sector access over US$2 billion in investment since 2020, which helped it be listed as one of Forbes' Next Billion Dollar Startups in 2023.

"We're committed to helping SaaS companies grow their revenue in ways that work best for them with access to capital," says Miguel Fernandez, co-founder and CEO of Capchase.

In light of the increasingly difficult circumstances surrounding the acquisition of venture capital, European entrepreneurs have shown an increased interest in non-dilutive investment during the past year.

"We can continue to serve as a key financial partner to UK and European SaaS businesses, supporting their growth in the current economic climate," the company said in reference to the most recent €105 million (US$113.9 million) debt financing.