The facility is designated to support Pipe's newly announced embedded Capital-as-a-Service solution for small and medium-sized businesses (SMBs). It "has the potential to upsize up to $200 million in the future."

Pipe states that its new product is specifically designed to cater to vertically integrated software suppliers and payment companies.

Pipe was established in 2019 and offers partners the ability to integrate its capital solution "into their own ecosystem" for improved merchant experiences and "monetisation of payments in a mutually beneficial way" thanks to its infrastructure and APIs.

According to Pipe CEO Luke Voiles, the facility would also let the business to "expand our existing capacity to more than $1 billion per year in originations for SMBs."

Partner at VPC Tom Welch discusses the company's investment in Pipe, saying that the two businesses "share a similar mission" of giving funding solutions to businesses that have been "overlooked by traditional sources of financing."

The news of Pipe's new location comes after lendtech went on a recruiting binge last year. The business hired Yasmin Moaven as chief operations and marketing officer, Manpreet Dhot as chief risk officer, Scott Polchleb as chief innovation officer, and Namrata Ganatra as chief product and technology officer in an attempt to assemble a "fintech dream team," as Voiles put it.