Jenfi Raises $6.3M for Southeast Asian Revenue-Based Financing

Southeast Asian Businesses Gain New Financing Option with Jenfi

Digital enterprises across Southeast Asia frequently encounter hurdles when attempting to secure early-stage funding. Many are hesitant to relinquish equity, yet often find it challenging to obtain working capital through conventional lending institutions. Singapore-based Jenfi addresses this gap by offering revenue-based financing, providing up to $500,000 with adaptable repayment schedules, which co-founder and CEO Jeffrey Liu describes as “growth capital delivered as a service.”

A First-of-its-Kind Solution for the Region

Although revenue-based financing is becoming increasingly popular in numerous markets globally, Liu explained to TechCrunch that Jenfi is the pioneering company of its type specifically targeting Southeast Asia. The startup recently announced the successful completion of a $6.3 million Series A funding round, spearheaded by Monk’s Hill Ventures.

The investment round also saw participation from Korea Investment Partners, Golden Equator Capital, 8VC, ICU Ventures, and Taurus Ventures. Previously, Jenfi secured $25 million in debt financing from Arc Labs, based in San Francisco.

Focus on Digital-Native Companies

Jenfi primarily collaborates with businesses built for the digital world, encompassing SaaS companies and e-commerce vendors. Notable clients include Tier One Entertainment, Pay With Split, and Homebase.

While the exact amount of non-dilutive funding provided to date remains undisclosed, Jenfi aims to deploy $15 million by July 2022. The company reports that its average client has experienced compounded sales growth of approximately 26.5% over a three-month period, 60% over six months, and an impressive 156% over a year.

Significant Sales Growth in Portfolio Companies

Currently, the combined sales of companies within Jenfi’s portfolio exceed $30 million. Jenfi projects that the capital already distributed will facilitate a surge in sales to $47 million by July 2021, representing a 156% increase.

From GuavaPass to Jenfi: Addressing a Market Need

Jeffrey Liu and Justin Louie launched Jenfi in 2019, recognizing a lag in traditional financial services’ response to the rapid digital expansion within Southeast Asia. Prior to Jenfi, the duo co-founded GuavaPass, a fitness studio membership platform that was ultimately acquired by ClassPass in 2019.

The creation of Jenfi was directly influenced by the financing obstacles Liu and Louie encountered while scaling a high-growth startup focused on Asian markets.

Rapid Application and Funding Process

Jenfi’s application process is entirely conducted online, and in certain instances, companies have received funding in under 24 hours. However, the typical timeframe is a few days. This speed offers a significant advantage over traditional loans or private equity, which can require months to finalize, potentially hindering a company’s ability to capitalize on emerging revenue opportunities.

For instance, an e-commerce business might require immediate working capital to replenish inventory following a sudden surge in demand for a specific product.

Enhancing Risk Assessment Capabilities

A portion of the Series A funding will be allocated to the development of further integrations for Jenfi’s proprietary risk assessment engine. This engine analyzes the efficiency with which companies allocate their growth expenditures.

Currently, it integrates with data from bank accounts, accounting software like Xero and Quickbooks, payment gateways such as Stripe and Braintree, e-commerce platforms including Shopify, Shopee, and Lazada, and advertising platforms like Facebook Ads and Google Ads.

Flexible Repayment Terms

Rather than rigid installment plans, Jenfi offers companies flexible target repayment schedules and charges a flat fee based on the financing amount, monthly sales, and the repayment duration. Jenfi continuously monitors the data provided by its clients, enabling it to identify potential needs for additional capital or adjustments to repayment terms.

Expanding Beyond Financing

Jenfi envisions evolving beyond simply providing financing to also offer tools that support business growth. “We aim to be partners in the growth of our portfolio companies,” Liu stated.

Automated Analytics for Growth Opportunities

Leveraging data from various sources – including bank accounts, accounting software, and digital advertising platforms – Jenfi can pinpoint potential opportunities. The Series A funding will also support the development of automated analytics.

For example, the platform could identify a high-ROI advertising opportunity on Google Ads and proactively notify the company, inquiring about their interest in securing additional capital to fund the campaign.