Why FundThrough Acquired BlueVine’s Factoring Business
“I know it might seem sudden for you, but we’ve been engaged in discussions since the Summer, and [BlueVine] has been in discussions internally for certainly longer than that.”
FundThrough announced their acquisition of the factoring division of BlueVine on Thursday. A deal that has been long in the works will make the Canadian factoring company’s American portfolio 80 percent of their business.
“From FundThrough’s perspective, we’ve always had BlueVine’s factoring business on our radar,” said FundThrough’s Co-founder and CEO Steven Uster, exclusively to deBanked. “We started around the same time, they grew their business nicely, and then they started to branch out to other products.”
Uster spoke about BlueVine outgrowing their factoring business, while FundThrough was growing enough to acquire it. “From the outside looking in, it looked like this might’ve been turning into a non-core asset for them, but yet very core for us.”
For FundThrough, the move is substantial. The company has acquired their largest competitor’s inaugural product. According to Uster, the move brings two companies together who are starkly similar in more ways than just the product they sell.
“We share similar cultures, we’re much smaller obviously as a whole, but our factoring business is bigger,” he said. “We share a similar mindset, we’re also a technology based business, our systems are quite similar, so the move [will] be an easier, elegant transition.”
“We determined that FundThrough is perfectly positioned to serve our factoring clients with the care and individual attention they need and deserve,” said Eyal Lifshitz, Co-founder and CEO of BlueVine. “Our factoring clients will be in great hands with FundThrough.”
Lifshitz spoke on his company’s growth, and how the move will allow the company to focus on better serving their existing customers. “Since launching BlueVine, we’ve been focused on the financial needs of small businesses and are very proud of what we’ve been able to accomplish. As we evolve our products and services, we continuously examine how we can better serve our customers at scale.”
According to Uster, fintech-inspired invoice factoring has sparked unprecedented interest in the financial world lately. While he is unsure of the reason, the engagement and inquiries FundThrough has received prior to the acquisition have been significantly higher than in the past.
“Something shifted over the last twelve months,” Uster said. “All of the sudden, without much branding, we have been getting a bunch of inquiries about partnering and providing this embedded invoice factoring solution.”
With their acquisition comes confidence, and it sounds like FundThrough is ready to be on the forefront of tech-infused financing. “[The acquisition] provides us the scale to be the partner of choice. We are now the players in the market,” Uster said.
“If you want to offer tech enabled instant funding on invoices in your B2B marketplace, FundThrough is now the solution.”Last modified: January 13, 2022
Adam Zaki was a Reporter at deBanked.