Notable Capital, a California-based venture capital firm, led the financing round, which came months after the fintech had obtained a $125 million warehouse facility. Redpoint Ventures and previous investors GIC, Ribbit Capital, and Thrive Capital all participated.

Sahill Poddar, Ralph Furman, and Vineet Goel, former Robinhood employees, founded Parafin in 2020. The company provides full-stack embedded financial infrastructure solutions for businesses like marketplaces, SaaS platforms, and payment processors, allowing them to offer their SME partners a range of financial services, such as capital, expense management, and savings tools, through a single integration.

According to Parafin, since its founding, it has provided "nearly $1 billion annually" in funding for "tens of thousands of small businesses" in the US and Canada.

Furthermore, the fintech has recorded a 400% growth in transaction volumes since its $60 million Series B investment in 2022 and anticipates becoming profitable "within six months."

The most recent funding round would "allow us to scale existing products, ship new products, expand into new geographies, and deepen our partnerships with platforms that support the global small business economy," according to Sahill Poddar, CEO and co-founder of Parafin.