Lightspeed: MCAs continue to grow with healthy margins

Lightspeed Commerce, a global e-commerce platform for merchants, once again talked about its MCA business in the latest quarterly earnings call despite it only accounting for 3% of the company’s overall revenue.

“[Lightspeed] Capital continues to grow with healthy margins,” said CFO Asha Bakshani. She added that it was very popular with customers but that it was still a nascent product offering for them. They’ve consistently said over the last couple years that they intend to grow this business cautiously, which they have done. The company currently holds $87.5M worth of MCAs on its balance sheet.

“Lightspeed capital offers fast access to capital and an automatic repayment method to Lightspeed Payments,” Bakshani said. “Merchants are leveraging this offering to finance inventory purchases, upgrade equipment, and expand their overall business.”